Ukrainian state defends its rights to Ukrnafta
3 February 11:35
The Svea Court of Appeal (Stockholm) has ruled in favor of Ukraine, rejecting the application of three Cypriot companies to set aside the arbitral award in the Ukrnafta case of February 4, 2021. This was reported by the Ministry of Justice of Ukraine, "Komersant Ukrainian" reports.
The ministry reminded that Littop Enterprises Limited, Bordo Management Limited and Bridgemont Ventures Limited, which together own 40.1009% of Ukrnafta shares, initiated arbitration proceedings against Ukraine in 2015, demanding compensation in the amount of more than USD 6 billion with interest. The Stockholm Court of Appeal dismissed the appeal of these three Cypriot companies to set aside the arbitral award in the Ukrnafta case on February 4, 2021.
“After considering the claims of the plaintiffs, the arbitral tribunal agreed with the position of Ukraine that the tribunal lacks jurisdiction to consider this dispute, which was confirmed by the Court of Appeal of Svea,” said Olha Stefanishyna, Vice Prime Minister for European and Euro-Atlantic Integration of Ukraine and Minister of Justice of Ukraine.
According to the Ministry of Justice, the plaintiffs’ claims were based on several key aspects:
– naftogaz of Ukraine’s withdrawal of gas from Ukrnafta’s gas storage facilities at reduced prices or free of charge for the needs of the population;
– failure to comply with the decisions of Ukrainian courts on the return of the gas taken;
– increase in the rate of rent for the use of subsoil;
– legislative changes to reduce the quorum for general meetings of joint stock companies.
The court agreed with Ukraine’s key argument that the claimants did not make an actual contribution to Ukrnafta’s authorized capital and, therefore, did not make an investment under the Energy Charter Treaty and were not entitled to bring the arbitration claim.
According to the court’s decision, the claimants are obliged to compensate Ukraine:
– the costs of the arbitration proceedings: uSD 18,927,177.62, as well as interest in accordance with Article 6 of the Swedish Interest Act from February 4, 2021 until paid.
– court costs in the case (in respect of jurisdictional proceedings): uSD 2,669,131 plus interest in accordance with Section 6 of the Swedish Interest Act from January 31, 2025 until paid.
– court costs in the case (in respect of the proceedings on court costs): uSD 549,674 and SEK 2,800 plus interest in accordance with Section 6 of the Swedish Interest Act from January 31, 2025 until paid.
Ukraine is represented in the case by Latham & Watkins (London) LLP (foreign counsel), Westerberg & Partners (Swedish counsel) and Sayenko Kharenko Attorneys at Law (Ukrainian counsel).
As a reminder, Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50% stake in 1 share. on November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is now managed by the Ministry of Defense.
Why the lawsuit was filed by three Cypriot companies
This case brings back the long-standing struggle between the state and Ihor Kolomoisky for control of Ukrnafta. The minority shareholders of Ukrnafta, Littop Enterprises Limited, Dridgemont Ventures Limited and Bordo Management Limited, filed the lawsuit in response to the draft law No. 1310 adopted by the Parliament on January 14, 2015, which introduced a fundamental amendment to the law on joint stock companies, allowing for a shareholders’ meeting with a quorum of 50% plus one share.
It was adopted in order to return control of Ukrnafta, which was de facto managed by Ihor Kolomoisky’s Privat group, to the state, which de jure owns it.
Prior to this, Ukrnafta’s minority shareholders had successfully blocked shareholder meetings, using the fact that a quorum of at least 60% plus one share was required for a legitimate meeting.
Ihor Kolomoisky is still in jail
Oligarch Ihor Kolomoisky has been in jail for almost a year and a half. As Slovo i Dilo reminds, he has already been served with four suspicions: three related to the organization of the seizure of PrivatBank’s funds and another to the organization of a contract killing.
After the first suspicion was announced, the Kyiv court arrested Kolomoisky with the possibility of bail. Subsequently, the bail amount increased and decreased several times: in September 2023 – UAH 509 million, then – UAH 3.89 billion, December – UAH 2.7 billion, January – UAH 2.65 billion, February – UAH 2.4 billion, April – UAH 1.96 billion. on August 29 last year, in one of the cases, Kolomoisky’s bail was changed to UAH 1.87 billion instead of arrest.
But even if the oligarch pays this money, he will still remain in custody because of the fourth suspicion.
on May 8 last year, the police served him with a notice of suspicion of organizing a contract killing: according to the investigation, Kolomoisky, acting on personal revenge, ordered the murder of the director of a law firm for failing to comply with the requirements to cancel and invalidate the decisions of the general meeting of shareholders of an open joint-stock company. The events in question date back to 2003. Law enforcement officials said that he had engaged gang members to kill him. They did attack the director, but he survived. In this case, Kolomoisky was arrested without bail.
There is also an opinion that Ihor Kolomoisky is hiding in the pre-trial detention center from the American Themis, which has serious claims against him.
