The Economic Court of Cassation as part of the Supreme Court satisfied the cassation appeals of PrivatBank, the Cabinet of Ministers and the Ministry of Finance and annulled the decision of the court of appeal in case No. 910/19005/19 on the claim of the company BIRGMINTON INVESTING INC, related to the former owners of the bank, and left the decision of the court of the first instance in force, which closed the proceedings in the case.
This is stated in the message of PrivatBank, Ukrainian News Agency reports.
The company tried to challenge the share purchase agreement concluded in the process of nationalization of PrivatBank, according to which the plaintiff purchased the bank's shares in the bail-in procedure and later sold his shares to the State for UAH 1.
As in other cases related to the nationalization of PrivatBank, the key issue in this case was the application of Law of Ukraine No. 590-IX "On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of Banking Regulation Mechanisms", in accordance with which all similar court proceedings in cases based on lawsuits by former shareholders of the bank are subject to closure.
Despite the fact that during today's meeting, the plaintiff did everything possible to prevent a fair decision - 6 groundless motions were submitted and even the panel of judges was dismissed - all the procedural diversions of the bank's opponents were rejected by the court.
This decision of the Supreme Court is another step towards the final resolution of all disputes regarding the impossibility of returning PrivatBank, nationalized in 2016, to its former owners.
The case of BIRGMINTON INVESTING INC was the first of such cases to be considered by the Cassation Economic Court after the Grand Chamber of the Supreme Court issued its conclusions in the case of O.V. Dubilet regarding the obligation and legality of the application of the provisions of Law No. 590.
The adoption of Law No. 590 was a key requirement of international aid programs for Ukraine from the IMF, it was adopted with the support of President Zelenskyy in May 2020.
The Economic Court of Kyiv applied Law No. 590 and determined that the nationalization cannot be canceled and the bank cannot be returned to its former owners.
However, the Northern Economic Court of Appeal satisfied the plaintiff's appeal and, ignoring the requirements of Law No. 590, referred the case to the court of first instance for further consideration of the merits.
Proceedings in the case on the claim of BIRGMINTON INVESTING INC were stopped by the Supreme Court pending consideration of the case on the claim of Dubilet O.V. on the invalidity of transactions related to the purchase and sale of shares and was renewed in connection with the final closure on February 15, 2023 by the Grand Chamber of the Supreme Court of the proceedings in the case of Dubilet O.V. on the basis of Law No. 590.
As Ukrainian News Agency earlier reported, in 2022, PrivatBank reduced its 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.
Previously, LLC Alonza and LLC Mission-1, which are related to the former owners of the bank, tried in the courts to prohibit the bank from terminating the lease agreement of the Pryozernyi shopping center and to deprive the state bank of its ownership of the said shopping center in Dnipro.
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