Business court repeatedly rejects SPF appeal seeking to terminate contract on purchase of Ukrtelecom with ESU
The Kyiv Business Court again denied the State Property Fund (SPF) of Ukraine a claim against ESU LLC to terminate the privatization contract for the sale and purchase of 92.79% of Ukrtelecom's shares and recover $81.9 million in penalties for late meeting of obligations to implement the investment program.
According to the court decision, published in the database of court decisions, the court established that ESU LLC fulfilled its duty to make an investment within the time period stipulated in the purchase and sale contract, therefore, ESU did not have a delay in fulfilling its obligations under the contract in this part, therefore, there are no legal grounds for applying the liability established by law in the form of penalties to the company.
The court also found that there are no grounds for terminating the contract for the sale of Ukrtelecom shares dated March 11, 2011, and therefore the SPF's demand to return the Ukrtelecom shareholding to the state is unfounded.
"The plaintiff did not prove the fact of non-fulfillment of the terms of the contract for the sale and purchase of shares by ESU LLC and a substantial violation of its obligations by the buyer, which would largely deprive the plaintiff (seller) of what it expected when concluding this contract," the court said in its decision.