The Court of Appeal recognized the nationalization of PrivatBank as legitimate

Oleksandra Opanasenko

The Sixth Appeals Administrative Court canceled the decision of the District Administrative Court of Kyiv on the illegality of the nationalization of PrivatBank. The proceedings in the case were closed.

This was reported by the press service of the National Bank of Ukraine.

In 2019, the District Administrative Court of Kyiv recognized the decisions of the authorities involved in the process of nationalization of PrivatBank as illegal.

"Today, after 6 years, the court confirmed the impossibility of returning to the former owners of PrivatBank, for the recapitalization of which the state spent more than 155 billion hryvnias. It should also be stated that all the decisions of state bodies regarding the nationalization of PrivatBank are valid," said Viktor Hryhorchuk, Head of Claims and Lawsuits Department of the Legal Department of the National Bank.

Nationalization of PrivatBank

PrivatBank, the largest commercial bank in Ukraine, was nationalized on December 19, 2016. Ukraine recapitalized the bank by 155 billion hryvnias. Previously, it belonged to businessmen Ihor Kolomoiskyi and Gennadiy Bogolyubov. In December 2017, PrivatBank sued its former owners. The plaintiffs claim that the businessmen withdrew approximately $2 billion from the bank by conducting a series of illegal transactions. The former owners of the bank deny its nationalization.

On April 18, 2019, the District Administrative Court of Kyiv considered the case based on Kolomoiskyiʼs lawsuit against the National Bank, the Cabinet of Ministers, the Individual Deposit Guarantee Fund, and the National Commission for Securities and the Stock Market regarding the recognition of the illegal nationalization of PrivatBank. Then, the court found the decision on the nationalization of PrivatBank illegal. In May 2019, the Cabinet of Ministers decided to appeal the decision of the District Administrative Court of Kyiv to declare the nationalization of PrivatBank illegal. Now the appeal overturned this decision.