The Supreme Court made a resonant decision in the case of Concord Bank, which is in the process of liquidation, effectively confirming that shareholders of banks being withdrawn from the market in Ukraine are deprived of the right to judicial protection. The only way for them to protect their rights remains to appeal to the European Court of Human Rights, writes UNN.
The panel of the Cassation Administrative Court within the Supreme Court on July 30, 2025, closed the proceedings in the dispute between Concord Bank and the National Bank of Ukraine and the Deposit Guarantee Fund for individuals. Previously, the courts of first and appellate instances recognized the NBU's decision to withdraw the bank from the market as illegal, but the Supreme Court overturned these decisions without even considering the case on its merits.
In its ruling, the panel directly stated that no court in Ukraine is empowered to consider claims by shareholders of banks undergoing liquidation regarding unlawful actions or decisions of the National Bank of Ukraine.
In this ruling, the Cassation Administrative Court within the Supreme Court set forth a legal conclusion that, according to the specifics of the legal regulation of the disputed legal relations, the claims of a former shareholder of an insolvent bank (in this case, a liquidated bank) are not subject to consideration either in administrative or commercial proceedings, and by the subjective composition of the participants in the legal relations, they do not fall under the jurisdiction of a civil court. That is, such claims are not subject to consideration by any court
Thus, the Supreme Court did not evaluate the decisions of the lower courts and did not recognize them as illegal or unfounded. Olena Sosedka, co-founder of Concord Bank, considers the court's decision biased, stating that shareholders were deprived of their constitutional rights to protection.
Such a court decision is indeed unprecedented, as it effectively deprives shareholders of banks undergoing liquidation of access to justice, believes Dmytro Kasyanenko, a lawyer at Kasyanenko & Partners Law Firm.
"The wording 'such claims are not subject to consideration by any court' means that regardless of the circumstances, arguments, or evidence, a person will not gain access to justice. This contradicts Article 55 of the Constitution of Ukraine, which guarantees everyone the right to judicial protection, as well as Article 6 of the Convention for the Protection of Human Rights and Fundamental Freedoms," noted Kasyanenko.
Nina Yuzhanina, a member of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, and a people's deputy, holds a similar opinion.
"The situation with the impossibility for the owners of the bank, which was, in essence, confiscated, liquidated on the basis of the decisions of the National Bank. It seems to me that any such dispute, any such situation should be considered by the courts. Why is it denied and why is it not subject to further appeal in any judicial instance? It seems to me that this cannot be," noted the parliamentarian.
She noted that in cases where courts in Ukraine refuse to hear cases, shareholders should appeal to the European Court of Human Rights (ECtHR), even though this process is lengthy.
Thus, Ukrainian courts have finally blocked the ability of shareholders of banks being withdrawn from the market to defend their rights in Ukraine. The only way to protect their rights remains the European Court of Human Rights, as denial of access to justice is a direct violation of the Convention for the Protection of Human Rights and Fundamental Freedoms.
Addendum
Despite the war in Ukraine, the process of withdrawing banks from the market has not stopped. Thus, since February 24, 2022, liquidation has been initiated for 8 banks. In 2023, for the first time in Ukraine, not only bankrupt banks but also profitable institutions fell under liquidation and license revocation – this refers to Concord Bank. As Olena Sosedka stated, at the time the regulator announced the decision to liquidate the bank, the financial institution had enough highly liquid assets to make all necessary payments within 2-3 weeks. But the bank liquidation process is strictly regulated by law and can generally last up to three years.