Court confirms that PrivatBank will not be returned to former owners

Commercial Court of Kyiv confirmed the impossibility of returning the state-owned PrivatBank to its former owners.  The case was opened on the the lawsuit filed by former bank shareholder Gennadiy Boholyubov.  UNN with reference to the NBU press service.

By the decision of the of the Kyiv Commercial Court of November 27, 2023, closed the proceedings in the case of invalidation of the sale and purchase agreements of PrivatBank, as a result of which the state acquired 100% of the bank's shares in December 2016, and the obligation to return the bank's shares to the former shareholder

Details

The case was was initiated by a lawsuit filed by former PrivatBank shareholder Gennadiy Boholyubov against NBU, the Cabinet of Ministers, the Ministry of Finance, PrivatBank and the Deposit Guarantee Fund. of individuals.

Bogolyubov tried to to regain ownership of PrivatBank shares in court and to challenge the agreement sale of shares of the insolvent bank, as a result of which the state acquired ownership of 100% of PrivatBank's shares and spent more than 155 billion UAH.

According to Viktor Hryhorchuk, Head of the Claims and Litigation Department of the NBU Legal Department, the court closed the proceedings. Hryhorchuk, the court closed the proceedings based on the provisions of the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Improving mechanisms for regulating banking activities" No. 590-IX. this law, proceedings with such claims are subject to closure.

The Plaintiff has formulated such claims, the satisfaction of which will result in the return of the the bank's shares, but the law expressly prohibits this, as stated by the court

Grigorchuk also reminded that according to Article 41 of the Law of Ukraine "On the System of of Guaranteeing the Deposits of Individuals" after the conclusion of the sale and purchase of shares of an insolvent bank and their transfer to an investor the state as an investor may not be deprived of ownership of the shares it acquired the bank's shares and such shares cannot be reclaimed in favor of the previous owner.

To recap

On November 15, the Sixth Administrative Court of Appeal overturned the decision of the District Administrative Court of Kyiv that the nationalization of PrivatBank was illegal. nationalization of PrivatBank. The proceedings on the appeal against the decision was closed. 

For reference

The Cabinet of Ministers of Ukraine decided to enter the capital of PrivatBank on PrivatBank on December 18, 2016.