Economy 2022-08-15T07:49:16+03:00
Ukrainian news
Appeal Court Obliges PrivatBank To Return UAH 1.1 Billion To Surkis Family

Appeal Court Obliges PrivatBank To Return UAH 1.1 Billion To Surkis Family

court, PrivatBank, Kyiv Appeal Administrative Court, Surkis

On November 6, the Kyiv Appeal Administrative Court obliged PrivatBank to return UAH 1.05 billion, USD 266,200 and EUR 7,800 to the Surkis family.

The press service of the National Bank of Ukraine announced this to Ukrainian News Agency.

The District Administrative Court of Kyiv opened proceedings in a lawsuit filed by the Surkis family (Ihor, Hryhorii, Rakhmil, Maryna, and Svitlana Surkis, as well as Polina Kovalyk) on December 27, 2016.

The Surkis asked the court to cancel the National Bank of Ukraine's decision No. 105 of December 13, 2016, which declared them as PrivatBank insiders.

The unencumbered liabilities and funds of related persons were converted into capital via the bail-in mechanism when PrivatBank was in interim administration.

According to the court materials, Ihor Surkis had UAH 151 million in an account with PrivatBank, Polina Kovalyk UAH 514.1 million, Hryhorii Surkis UAH 163.1 million, Maryna Surkis UAH 174.5 million, and Rakhmil Surkis UAH 44.8 Million.

The Surkis family also demanded return of USD 266,200 and EUR 8,000 in accrued interest on deposits to them.

On May 17, the court ruled that the decision of a National Bank of Ukraine commission that declared the Surkis family related parties of PrivatBank was illegal and canceled it. It also canceled the PrivatBank temporary administrator's orders related to the private accounts.

The court ordered payment of the abovementioned amounts to the Surkis family.

During the litigation the National Bank of Ukraine insisted that Ihor Surkis and Ihor Kolomoiskyi are shareholders, including in the "1+1" television channel, and that indicated the link of Surkis with PrivatBank. The National Bank of Ukraine said relatives of Ihor Surkis were also related persons with PrivatBank.

The court arrived at conclusion that essential participation of Ihor Surkis in companies affiliated with PrivatBank - the limited liability company Television Company "Studio 1+1", the limited liability company Gravis-Kino, and TET television company - had not been proven.

The court said the state register does not name Ihor Surkis as owner, beneficiary, shareholder, top manager or any other official of the companies.

The court said the National Bank of Ukraine had not proven the link of Ihor Surkis with other companies where Ihor Kolomoiskyi is a beneficiary.

On November 6, the Kyiv Appeal Administrative Court rejected the appeal of the National Bank of Ukraine, the Finance Ministry, the Deposit Guarantee Fund.

The National Bank of Ukraine has submitted a cassation appeal to the Higher Administrative Court and asked the court to suspend the ruling of the appeal court.

"We consider that the courts of the first and the appeal instances violated the procedural legislation, ignored the evidence in the case and adopted unlawful decisions. With this regard a question is being studied of applying on the matter to the High Council of Public Justice," said the National Bank of Ukraine.

As Ukrainian News Agency earlier reported, on December 18, 2016, the Ukrainian Government decided to enter the capital of PrivatBank.

In compliance with the decision, the state represented by the Ministry of Finance of Ukraine became the owner of the 100-percent stake in the bank and PrivatBank has been additionally capitalized for UAH 116.8 billion, including UAH 9.8 billion in 2017.

When the bank was taken into provisional administration, the bank's arrears before its stockholders (including Eurobonds) became covered by a bail-in mechanism (conversion into capital).

The District Administrative Court of Kyiv decided on May 17 to order PrivatBank to pat the A-Bank (Dnipro), which is owned by the Surkis brothers, the UAH 364 million that was written off during the nationalization of PrivatBank.

In early November 2017, Madison Pacific Trust Limited, the trustee of holders of the eurobonds of PrivatBank, demanded early redemption of the securities.

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