UBS withdraws nationalization lawsuit against Ukraine’s PrivatBank

10 March, 09:21 PM
Swiss bank UBS withdraws lawsuit against Privat (Photo:Photo:UBS via Facebook)

Swiss bank UBS withdraws lawsuit against Privat (Photo:Photo:UBS via Facebook)

Swiss-based international investment bank UBS AG has withdrawn its lawsuit against Ukrainian state-owned PrivatBank, the Ukrainian bank’s press service reported via Telegram on March 9.

“The international investment bank UBS AG, without waiting for a solution to the issue of leaving its lawsuit without consideration, at the bank’s request, has independently withdrawn its lawsuit against the state-owned PrivatBank,” the report says.

The decision was announced on March 8 during a hearing of Shakoor Capital Limited vs. PrivatBank case in Kyiv’s Commercial Court.

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Earlier, at PrivatBank’s request, the court had already dismissed the lawsuits of two other international companies in the case, JP Morgan and Pala Assets.

Another court hearing is set for next week regarding the recovery of legal costs from JP Morgan and Pala Assets in favor of PrivatBank, while the next preparatory meeting in the case will happen in three weeks.

NV Business earlier reported that Russian billionaire Vladimir Iorikh, acting through Pala Assets Holdings Ltd company, was trying to declare PrivatBank’s nationalization illegal.

In September 2021, the London Court of International Arbitration issued final rulings on the arbitration proceedings initiated by UK SPV Credit Finance Plc and Madison Pacific Trust (bond trustee) against PrivatBank, which provided for the dismissal of all claims against the bank, as well as confirmation that the bank does not have any obligations to pay the principal amount and interest to the plaintiffs under the Credit Agreements dated Sept. 17, 2010 (worth $200 million on bonds issued in 2010) and Feb. 25, 2013 (worth $175 million on bonds issued in 2013).

PrivatBank was therefore released from any obligation to pay the principal amount or any additional interest on any of four loans that were subject to the bail-in procedure.

On Dec. 18, 2016, the Ukrainian government nationalized PrivatBank, on the recommendation of the National Bank of Ukraine and former shareholders Ihor Kolomoisky and Gennadiy Bogolyubov.

After losing their shares, the bank’s former owners consider the nationalization illegal, while PrivatBank and the Ukrainian government have demanded compensation from Kolomoisky and Bogolyubov.

Those cases are gradually making their way through both Ukrainian and foreign courts.

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