17:39 02.03.2021

Administrative Court of Appeal decides to wait for Constitutional Court's verdict on 'anti-Kolomoisky' law in case on legality of PrivatBank's nationalization

2 min read
Administrative Court of Appeal decides to wait for Constitutional Court's verdict on 'anti-Kolomoisky' law in case on legality of PrivatBank's nationalization

The Sixth Administrative Court of Appeal has suspended the hearing of PrivatBank's appeal against the recognition of PrivatBank's nationalization by the court of lower instance in the suit of the bank's ex-shareholder Ihor Kolomoisky, pending the verdict of the Constitutional Court of Ukraine under the so-called banking "anti-Kolomoisky" law No. 590-IX.

An Interfax-Ukraine correspondent has reported that the court made the decision on Tuesday.

As reported, the District Administrative Court of Kyiv on April 18, 2019 declared illegal the nationalization of PrivatBank at the end of 2016.

The Verkhovna Rada on May 13, 2020 adopted law No. 590-IX on amendments to certain legislative acts of Ukraine on improving certain mechanisms for regulating banking activities, which is necessary for cooperation with the International Monetary Fund (IMF).

On June 11, 2020, some 64 MPs filed a petition with the Conditional Court of Ukraine on compliance of this law and some of its provisions with the Constitution. The law establishes the impossibility of returning insolvent banks to their former owners, makes it possible to complete the procedures for withdrawing such financial institutions from the market and determines the procedure for receiving compensation by their former owners. In addition, it improves the decision-making procedure of the National Bank, makes it possible to identify the problematic nature of banks at early stages and expands the mechanisms for the possible participation of the state in removing a bank from the market.

On December 18, 2016, the government of Ukraine, referring to the proposal of the National Bank and the former shareholders of PrivatBank, decided to nationalize this largest financial institution on the Ukrainian market and injected over UAH 155 billion into its capital.

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