The highest court affirmed Megabank’s failure and reversed prior rulings.
The Supreme Court validated the legality of the National Bank of Ukraine (NBU)’s choice to deem Megabank bankrupt.
“On June 24, 2025, after assessing the National Bank’s appeal, the Supreme Court invalidated the judgments of the lower tribunals and sustained the legitimacy of the National Bank’s resolution to declare Megabank insolvent,” the regulatory body stated on Friday.
In its verdict, the Supreme Court asserted that the NBU operated within its authority, as outlined by the laws “On the National Bank of Ukraine” and “On Banks and Banking Activities.” The regulator possessed the prerogative to conduct examinations, apply expert assessment, and pronounce banks insolvent should they neglect to address their issues within 120 days of being labeled problematic—even during times of conflict.
The court underscored that the NBU’s professional evaluation is assumed to be dependable and is not subject to judicial review unless there are evident infringements or abuses of power. This methodology is in line with global standards, as the NBU holds distinct proficiency in the monetary domain.
The National Bank repeatedly cautioned Megabank’s leadership regarding significant dangers, and the detected breaches indicated the inadequacy of the bank’s model concerning capital, solvency, and risk management stipulations.
NBU representative Viktor Grigorchuk remarked that the bank’s difficulties emerged even before the hostilities, and regulatory transgressions posed a hazard to both patrons and the steadiness of the financial structure.
As previously mentioned, Megabank was pronounced insolvent on June 2, 2022. In August of the same year, Viktor Subbotin, the possessor of a considerable share in the bank, lodged a legal action insisting that the NBU’s determination be proclaimed unlawful and nullified.
Nevertheless, the initial and appeal courts questioned the regulator’s expert judgment, disregarding its power to remove banks from the market within the timelines stipulated by legislation. They also acknowledged the claimant’s contentions concerning force majeure, despite these not excusing the bank from adhering to mandates effective before the enforcement of martial law. Consequently, these tribunals upheld Subbotin’s assertion without a legal foundation.
According to the NBU, the monetary institution’s major stakeholders as of January 1, 2022 were Viktor Subbotin – 60.74% (direct and indirect ownership), the European Bank for Reconstruction and Development (EBRD) – 11.3%, the German development bank KfW – 11.3%, Maksym Yefimov – 9.8%, Elena Subbotina – 7.8%, and the International Finance Corporation (IFC) – 4.5%.
As per the NBU, as of March 1, 2022, Megabank was ranked 24th regarding assets (UAH 11.1 billion) among 69 banks nationwide.
