Court cancels ban on return of 245 gas stations to PrivatBank from companies from orbit of bank's ex-owners

On November 1, the Central Economic Court of Appeal satisfied PrivatBank's complaint about the cancellation of the injunction against the return of 245 gas stations.

This is stated in the bank's message, Ukrainian News Agency reports.

For almost three years, PrivatBank was limited in disposal of 245 gas stations, which were placed on the bank's balance sheet before its nationalization in 2016 and immediately leased, and then subleased.

The lessees already owe the state bank more than UAH 10 billion.

Back in 2016, before nationalization, PrivatBank placed 248 gas stations on its balance sheet by foreclosing on mortgage items, in compliance with the requirements of the NBU.

In particular, PrivatBank, like other banks, had to improve the quality of loan collateral and, accordingly, the quality of the loan portfolio.

Having placed gas stations on the balance sheet (i.e., taking them into ownership), the bank, under the leadership of the former management, immediately transferred them for financial leasing to companies from the orbit of the Privat group, concluding 22 leasing contracts with 15 lessees.

And they, in turn, subleased the gas stations to other companies of the same group.

According to the lawyers of PrivatBank, the initial placement on the balance sheet with the subsequent transfer to leasing was carried out in violation of the legislation.

"Repayment of leasing payments took place according to the scheme typical for Ihor Kolomoiskyi's group: in the first years, only interest was paid, later the principal amount was added. At the same time, the assessment during the transfer of the gas station to the bank's balance sheet was significantly overestimated. In the end, since 2018, the debtors reduced leasing payments, and later stopped them altogether," the bank explained.

Therefore, failure to fulfill the terms of financial leasing contracts forced PrivatBank in 2019-2020 to begin the process of terminating these contracts and returning the gas station under its control.

As Ukrainian News Agency earlier reported, in 2022, PrivatBank reduced profit by 14% to UAH 30.25 billion compared to 2021 (UAH 35.05 billion).

100% of PrivatBank belongs to the state represented by the Ministry of Finance.

The management strategy of state banks envisages the sale of PrivatBank within 5 years.