PrivatBank will not be returned to Kolomoisky: Supreme Court closes long-running case
26 November 2024 13:22
On November 26, the Commercial Court of Cassation of the Supreme Court finally closed the long-running court case on the return of PrivatBank to its former owners. This was reported by "Komersant Ukrainian" with reference to the National Bank.
The court dismissed the cassation appeals of the bank’s former owners, Ihor Kolomoisky and the Cypriot company Triantal Investments Ltd, upholding the previous decisions of the Kyiv Commercial Court and the Northern Commercial Court of Appeal.
By these decisions, the courts closed the proceedings on invalidation of the sale and purchase agreements for PrivatBank shares during its nationalization in December 2016.
“The Supreme Court has once again stated that there were no violations of the rights of the ex-owners in the procedure of removing the insolvent PrivatBank from the market with the participation of the state,” the NBU said in a statement.
Viktor Hryhorchuk, Head of the Claims and Litigation Department of the NBU’s Legal Department, said:
“The Supreme Court confirmed the legality of the closure of the proceedings based on the provisions of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Improving the Mechanisms for Regulating Banking Activities” No. 590-IX. Thus, the impossibility of returning PrivatBank to the ownership of its former shareholders has been confirmed once again.”
He also reminded that Article 41 of the Law of Ukraine “On the Deposit Guarantee System” guarantees that after the transfer of bank shares to an investor, the state cannot be deprived of ownership of these shares and they cannot be reclaimed in favor of the previous owners.
PrivatBank noted that Kolomoisky’s court case posed significant risks to the state’s financial system due to the claims of its opponents.
“The case of Kolomoisky and Triantal posed significant risks to the state’s financial system due to the claims of our opponents, but the bank remains state-owned. The case has been closed in accordance with the requirements of the current legislation of Ukraine regarding the impossibility of returning the bank’s shares to the former owners,” said Solvita Deglava, member of the board for reorganization and distressed assets of PrivatBank.
Kolomoisky previously owned 41.66% of PrivatBank’s shares, while Triantal owned 16.82%.
The proceedings on their claim were closed based on the provisions of the “anti-Kolomoisky” law No. 590-IX, which prohibits invalidating contracts concluded in the process of withdrawing banks from the market.
After the sale and purchase agreement for the shares of an insolvent bank is concluded and transferred to the investor, the state as an investor cannot be deprived of the ownership of the bank’s shares it has acquired. Such shares cannot be claimed in favor of the previous owner.
As of today, Ukrainian courts have closed proceedings in more than 30 lawsuits filed by PrivatBank’s affiliates seeking to invalidate the sale and purchase agreements of PrivatBank.
For reference
On December 18, 2016, the Cabinet of Ministers of Ukraine approved the decision to enter the capital of PrivatBank.
The transfer of PrivatBank to state ownership took place in accordance with Article 411 of the Law of Ukraine “On the Deposit Guarantee System”. This decision helped to avoid systemic risks for the banking sector and ensured financial stability in the country. The state spent more than UAH 155 billion to recapitalize PrivatBank.
