The European Union notes weak progress in criminal investigations into allegations of large-scale fraudulent activities in PrivatBank prior to nationalization, which led to at least $5.5 billion in damages to the bank, according to the EU’s annual Association Implementation Report.
“Legal cases related to PrivatBank, including on the recovery of funds allegedly embezzled ($5.5 billion) from the bank prior to its nationalization in December 2016, have continued in Ukrainian and international courts. The High Court of England announced in June 2020 that its hearing in PrivatBank’s fraud claim against its former owners would be held in March 2022. The bank’s former owners and associates have continued meanwhile seeking to have the nationalization overturned in Ukrainian courts. On June 15 the Supreme Court of Ukraine ruled in favor of the bank and the Ukrainian state in an appeal case relating to the “bail-in” of assets as part of the nationalization. A number of court hearings are nonetheless pending in relation to claims stemming from the “bail-in” procedure deployed during the nationalization and other challenges to the bank’s current legal standing,” according to the report.
As reported, the Supreme Court partially sustained the cassation appeal of the NBU, the Cabinet of Ministers and PrivatBank and canceled the decisions of the lower courts at the suit of the Surkis’ family, thereby upholding the NBU’s decision on recognizing the Surkis brothers as related to PrivatBank and invalidating the exchange agreements for their funds in the bank in the amount of over Hr 1 billion on bail-in, later bought out by the state for Hr 1.
