On 01/19/2023, the Supreme Court satisfied the cassation appeals of Privatbank, the NBU and the Ministry of Finance and overturned the decision of the Kyiv District Administrative Court dated 09/27/2018 and the decision of the Sixth Administrative Court of Appeal dated 01/22/2019 (in the case No. 826/7442/17) “Veltex” and canceled the decision of the NBU to recognize the plaintiff as a person related to Privatbank and the decision of the DGF to forcibly write off the funds of LLC “Veltex.” from accounts in Privatbank in December 2016 (during its nationalization) with the subsequent acquisition of bank shares for the corresponding funds, writes Finbalance.
At the same time, the Supreme Court granted the request of the National Bank to close the proceedings on this case.
“Taking into account the essence of the disputed legal relations and their subject composition, the panel of judges of the Supreme Court comes to the conclusion that the subject matter jurisdiction of the administrative courts does not extend to this dispute and the need to resolve it in the manner of economic proceedings.
Considering that the plaintiff’s relationship with the bank regarding the purchase and sale of the bank’s shares and the accounting of ownership rights to them are corporate, and therefore this dispute should be considered in the manner of economic proceedings“, – the decision of the court of cassation of 01/19/2023 says.
According to court documents, in 2013 Privatbank attracted subordinated debt to Veltex LLC for UAH 297.4 million.
Recall that the bail-in operation, carried out during the nationalization of Privatbank in December 2016, provided for the actual write-off of the bank’s debts to a number of creditors (including related parties and Eurobond holders) for a total of UAH 29.4 billion. Then, after the completion of the bail-in, the Ministry of Finance bought Privatbank from the DGF for UAH 1 and “filled” UAH 155 billion into the “charter” (an additional issue of shares for this amount was paid for with government bonds).
In 2021 the Bank of England accepted decision at the request of the NBU on the legality of the bail-in operation carried out at the end of 2016 during the nationalization of Privatbank in four issues of its Eurobonds issued through the British specially created company (SPV) Credit Finance plc for $595 million.
PrivatBank declaredthat the said decision of the Bank of England was not appealed.
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