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PrivatBank nationalization recognized illegal

The Kyiv District Administrative Court examined the case on the claim of Igor Kolomoisky against the National Bank of Ukraine, the Cabinet of Ministers of Ukraine, the Fund for Guaranteeing Individuals’ Investments and the National Commission on Securities and Stock Market.

During the meeting, the court declared illegal the decisions taken by the above-mentioned departments, which led to the nationalization of PrivatBank. The court also declared invalid since the conclusion of the contract for the sale of bank shares by the state.

The consideration of this case lasted from June 2017. Such a long period of consideration of the case is connected, in particular, with the total burden on judges on consideration of administrative cases and the need to study a significant amount of evidence in this case, the volume of which is more than 50 volumes.

The grounds for the adoption by the District Administrative Court of Kyiv of such a decision was the failure to prove by the defendants that there are grounds defined by law for classifying Privatbank as insolvent, as a result of which the procedure for its nationalization was subsequently initiated.

Thus, the procedure for the nationalization of PJSC KB Privatbank was recognized by the court as unfounded and such that it was carried out with numerous violations of the legislation in force at that time. The consequence was unlawful state intervention in the right of the Bank’s shareholders, which is a violation of both the requirements of national legislation, including the Constitution of Ukraine, and the provisions of international standards in this area.

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