District Administrative Court of Kyiv granted the claim of Ukrainian oligarch Ihor Kolomoysky against the National Bank of Ukraine and Ukraine’s Government on nationalization of PrivatBank, as the press office of the Central Bank reported.
“On April 18, 2019, District Administrative Court of Kyiv ruled to terminate the procedure of withdrawal of insolvent PrivatBank from the market with the participation of the state which violates the norms of the current legislation,” the message reads.
It was also noted that the respective decision of the court would be appealed.
“The court’s decision did not come into force and will be appealed by the National Bank. We will continue proving the legitimacy of the actions and decision made by the regulator in the appeal court. We emphasize that the legal uncertainty created by the court’s decisions undermines the financial stability,” Viktor Hryhorchuk, the Head of claim-related work of National Bank legal department, said.
“The decision to withdraw the insolvent PrivatBank with the participation of the state was made in compliance with the norms of the current legislation. It was supported by the National Security and Defence Council and Ukraine’s Government to provide financial stability and to save citizen’s money. The legitimacy of the decisions is obvious, the reverse procedure is impossible, as there are no legal or economic reasons for that,” Kateryna Rozhkova, Deputy Chairman of the National Bank, said.
Earlier, Kolomoysky, the Ukrainian oligarch and former owner of Privatbank, demanded to give him back two billion U.S. dollars of the bank's assets. He might, in turn, give up this financial institution.
The decision to nationalize Privatbank was made in December 2017. 100 percent of its shares were handed over to the state. The IMF supported that decision, stating that it's an important step to secure Ukraine's financial stability.