PrivatBank will not be returned to Kolomoisky: The Supreme Court has made a final decision
27 February 11:20
The Supreme Court of Ukraine has issued a final ruling confirming that PrivatBank cannot be returned to its former shareholders, including oligarch Ihor Kolomoisky. This was reported by "Komersant Ukrainian" with reference to the National Bank.
The Supreme Court dismissed Kolomoisky’s cassation appeal and upheld the decision of the Sixth Administrative Court of Appeal of November 15, 2023, which closed the proceedings on the case of appealing against the decisions of public authorities to withdraw the bank from the market with the participation of the state.
According to the Supreme Court’s ruling, the decision is final and not subject to appeal. This decision is an important milestone in the long-running legal battle over the nationalization of PrivatBank, which has been going on for several years.
Background of the case
Ihor Kolomoisky and other former owners of PrivatBank challenged the government’s decision to remove the bank from the market, which was done through the state’s participation in its capitalization. However, the lower courts ruled in favor of the state.
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On April 18, 2019, the Kyiv District Administrative Court overturned the government’s decision to nationalize PrivatBank at the suit of Ihor Kolomoisky, without taking into account the need for additional capitalization. The National Bank appealed the decision.
The Sixth Court of Appeal suspended the case in 2021, but the Supreme Court overturned this ruling in 2022. In November 2023, the Court of Appeal finally closed the proceedings.
The National Bank’s reaction
The National Bank of Ukraine expressed support for the Supreme Court’s decision. NBU Governor Andriy Pyshnyi emphasized that this verdict is an important step towards establishing the rule of law in Ukraine. He noted that the nationalization of PrivatBank was carried out in accordance with the current legislation to ensure financial stability in the country and preserve the funds of Ukrainians.
“The Supreme Court confirmed the legality of all decisions of the state authorities on the nationalization of the bank, which is an important signal for ensuring the financial stability of the country,” emphasized Mr. Pyshnyi.
Nationalization of PrivatBank
The nationalization of PrivatBank took place in 2016, when the bank was declared insolvent due to a significant capital shortage. According to the NBU’s decision, the bank was unable to fulfill its obligations for financial rehabilitation, which was confirmed by an international audit company.
In order to avoid a systemic crisis in the banking sector, the Ukrainian government decided to withdraw the bank from the market with the participation of the state, which helped to maintain financial stability in the country.
The state provided additional capitalization of over UAH 155 billion.
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What Kolomoisky is accused of in Ukraine
Ihor Kolomoisky is currently in a Ukrainian pre-trial detention center. Ukrainian law enforcement officers have served him with three notices of suspicion under several articles and cases.
on September 2, 2023, the SBU notified Kolomoisky of suspicion under two articles: fraud and legalization (laundering) of the proceeds of crime. According to law enforcement officials, between 2013 and 2020, Kolomoisky legalized more than half a billion hryvnias, transferring them abroad and using the infrastructure of controlled banking institutions.
on September 7, NABU detectives served another suspicion on Kolomoisky and five members of the group he organized – of misappropriating PrivatBank’s funds worth more than UAH 9.2 billion.
on September 15, the SBU served Kolomoisky with a third suspicion – of illegal actions with bank documents, seizure of property by an organized group through abuse of office, and money laundering. According to the investigation, between 2013 and 2014, Kolomoisky illegally seized UAH 5.8 billion through a criminal group consisting of employees of his PrivatBank.
on September 3, 2023, the court for the first time imposed a pre-trial restraint on Kolomoisky: detention with an alternative to bail in excess of UAH 509 million. However, already on September 15, after a new suspicion was announced, the court re-selected the measure of restraint and increased the amount of bail for Kolomoisky to UAH 3 billion 891 million.
After that, the court extended Kolomoisky’s detention four times, while reducing his bail twice – on November 28 to UAH 3 billion and on December 21 to UAH 2.7 billion.
on February 28, Kyiv’s Shevchenkivskyi District Court extended Ihor Kolomoiskyi’s detention for another two months – until April 25 – and reduced his bail to UAH 2.4 billion.
It should be noted that on May 8, Kolomoisky was notified of being suspected of ordering the murder of a law firm director for personal revenge.
At the same time, back in 2005, a criminal case was already initiated against Kolomoisky in this regard, which was later closed. Back in 2015, former MP and current advisor to the head of the OP Serhiy Leshchenko wrote in his blog why the case was closed and what it had to do with former Prosecutor General Sviatoslav Piskun and oligarch Viktor Pinchuk.
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