News (#4 April 2018)

Cases

Stockholm arbitration satisfied Naftogaz demands to Gazprom

The Stockholm Arbitration has satisfied Naftogaz of Ukraine demands for the reimbursement for transit gas volumes short-delivered by Gazprom.

Naftogaz obtained reimbursement in the amount of USD 4.63 billion. Following the results of two arbitration proceedings held in Stockholm, Gazprom has to pay
USD 2.56 billion to Naftogaz.

In arbitration Naftogaz wanted to demand about USD 16 billion from Gazprom, revision of tariffs, unblocking virtual reverse and the possibility to conclude a transit contract with another operator.

In November 2017 the Stockholm Arbitration suspended the deadline for adoption of decisions on Naftogaz cases against Gazprom till the end of December 2017 and the end of February 2018 as the Russian company filed an appeal against a separate arbitration award on the gas supply contract.

It also became known that Gazprom sent an official notice to Naftogaz of Ukraine on termination of gas supply and transit contracts because of the Stockholm Arbitration award.

Naftogaz sued Gazprom in the Stockholm Arbitration Court regarding two contracts: on transit of Russian gas to the EU through the territory of Ukraine and on purchase and sale of Russian gas by Ukraine.

 

Court says Khreshchatyk Bank bankruptcy illegal

The Kiev Administrative Court of Appeal has declared illegal the decision of the National Bank of Ukraine (NBU) to classify Khreshchatyk Bank as insolvent.

The decision to classify the bank as insolvent was adopted by the NBU on the basis of liquidity and capital standards violation by the bank. Due to lack of funds, the bank began delaying payments. During the temporary administration and liquidation of the bank, numerous facts evidencing manipulations with assets were revealed.

According to revealed facts of manipulations with assets, the Fund’s authorized person sent applications to law-enforcement bodies. Legal proceedings on several episodes still continue.

The bank’s ultimate owners are: Andrey Ivanov (37.44%), the territorial community of the city of Kiev represented by Kiev City State Administration (25%), Mykola Soldatenko (24.24%) and a number of minority owners.

The DGF will appeal against this decision to the court of cassation.

A reminder that the NBU recognized Khreshchatyk Bank as insolvent on 5 April 2015. The bank’s liquidation will continue until 5 June 2018 inclusive.

 

High Court of London ordered Kolomoisky and Bogolyubov structures to provide details on transactions involving Privatbank

The High Court of London, following court hearings in early March, ruled that Rossyn Investing Corp., Milbert Ventures Inc and ZAO Ukrtransitservice Ltd, all structures related to Igor Kolomoisky and Gennady Bogolyubov, should provide detailed information on transactions involving Privatbank funds received from other persons.

Thus, Privatbank filed a lawsuit against these businessmen, as well as against affiliated parties.

The bank statement of claim contains an allegation of fraudulent actions by the defendants, which consisted of transfer of about USD 1.9 billion to 46 Ukrainian structures on the basis of false loan agreements by Privatbank, then controlled by Kolomoysky and Bogolyubov, after which these funds were transferred to Rossyn Investing Corp., Milbert Ventures Inc and ZAO Ukrtransitservice Ltd.

Moreover, the defendants should provide information on the supply of large shipments of goods and equipment under false agreements.

On 19 December 2017, having considered the statement of claim, the court issued a ruling to freeze the defendants' funds.

Following the court decision, on 13 February 2018 the plaintiff filed an application demanding that Rossyn Investing Corp, Milbert Ventures Inc and ZAO Ukrtransitservice Ltd disclose information on assets worth more than GBP 25,000, as these structures did not disclose information in accordance with the court order.

Accordingly, following court hearings in early March, the court ruled that: “Rossyn Investing Corp., Milbert Ventures Inc and ZAO Ukrtransitservice Ltd should provide, to the extent possible, detailed information on the date of repayment, or, if such date was not specified, should explain why.”

After conducting the bank forensic audit, which covered 10 years of the bank activity, detectives of the private agency Kroll came to the conclusion that losses caused to Privatbank as a result of fraudulent actions in favor of ex-shareholders amount to USD 5.5 billion.

The plaintiff obtained a court order for worldwide seizure of the assets of the bank former owners, Kolomoisky and Bogolyubov, and of the above-mentioned six companies for more than USD 2.5 billion, as an interim measure.

 

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