Cases
NBU applies to court to recover UAH 300 million from MP Leonid Klimov
On 16 March 2016, the Primorsky District Court of Odessa ruled to collect from Mr. Klimov UAH 309 million and UAH 850,670 in loan debt under the stabilization loan agreement between the National Bank of Ukraine and PJSC Imexbank in favor of the NBU.
In the current ruling, the Court also ordered Mr. Klimov to reimburse UAH 4.6 million in legal fees to the NBU.
In November 2014 PJSC Imeksbank received a stabilization loan from the NBU, which Mr. Klimov guaranteed by his property. On 13 October 2015 Leonid Klimov received a request from the NBU to repay the debt, but did not pay it off.
In January 2016 the National Bank filed a claim in which applied to recover from Mr. Klimov the outstanding amount totaling UAH 309.85 million that arose as a result of the borrower’s failure to meet financial obligations.
In March 2016 Primorsky District Court of Odessa put Mr. Klimov under obligation to repay the debt, however on 15 July 2016 the Court of Appeal cancelled this requirement.
On 23 January the National Bank appealed to the Superior Specialized Court with a claim to recover indebtedness from the MP. A court opened proceedings on the case.
On 1 February the Odessa Region Court of Appeals recognized as legitimate cancellation of the arrest of Leonid Klimov’s property and dismissed the appeal of the National Bank.
Hague Arbitration delivered interim award in PrivatBank and Kolomoysky vs. the Russia Federation cases
Russia must fulfill its obligations to protect Ukrainian investors in occupied Crimea under the bilateral Russian-Ukrainian treaty on investment protection. This decision was delivered by the Permanent Court of Arbitration in the Hague.
At the same time, it is noted that the interim award delivered deals with certain issues of jurisdiction and admissibility on claims of Privatbank and its former owner Igor Kolomoysky, against Russia in relation to annexation of Crimea. Despite this, there is still no additional information about this award.
A reminder that the Arbitration proceedings on the claim of Igor Kolomoysky and LLC Belbek Airport against Russia commenced on 13 January 2015 on the basis of UNCITRAL regulations and the Treaty between the Governments of Ukraine and Russia of 27 November 1998 on Investment Protection. At that time, Russia was accused of violating its obligations resulting from the said treaty by using measures that deprived plaintiffs of property rights, contractual and other rights to operate the passenger terminal of Belbek airport in Crimea for commercial flights from February 2014.
Stockholm Court allowed compulsory collection of USD 250 million from OPP
The Yuzhniy City Court of Odessa Region recognized decision of The Arbitration Institute of the Stockholm Chamber of Commerce, which satisfied a claim by Ostchem, the company owned by Dmitry Firtash, for collection of more than USD 250 million from Odessa Port Plant (OPP) due to non-payment of debt for gas supplies.
The relevant decision of the Stockholm Court was adopted on 11 October 2016.
According to the October decision of Stockholm Arbitration Court, OPP is obliged to return Ostchem USD 193.36 million of principal debt and USD 57.8 million in fines for delay in payment.
As is known, Ostchem was the only supplier of gas to the plant since 2012, while other companies owned by Mr. Firtash have been the exclusive buyers of the plant’s products since March 2013.
The debt appeared in September-December 2013 under the gas supply agreement with Ostchem of 20 January 2013.
It was during this very period that Russia’s Gazprom reduced the price of gas for Ostchem from USD 430 to 265 per thousand cubic meters. But the Firtash-owned company continued selling gas to OPP at USD 430. The gas whose price was reduced was pumped into underground storages.
US regulator accused Ukrainian brokerage company of market manipulation
The Securities and Exchange Commission of the United States (SEC) has filed charges of market manipulation against Avalon FA Ltd, a brokerage company operating in Ukraine.
The document specifies that in the period from 2010 to 2016 Avalon earned more than USD 21 million on speculation by placing artificial bids for purchase and sale of shares. Moreover, Avalon received USD 7 million in the form of illegal profits by buying and selling shares of US companies with losses in order to manipulate prices of respective options, which it also traded in.
The American regulator filed charges against Nathan Fayyer, who is presented as the owner of Avalon, and also to Sergei Pustelnik, who is presumably the real beneficiary. The Commission is demanding a trial of these individuals to be carried out under federal laws in order to compensate for losses.
Property and bank accounts of Olympic Stadium are distressed
Specialists of the State Audit Service of Ukraine have carried out a financial audit of NSC Olympiyskiy and found a number of reasons for its unprofitability. As at the moment the company has significant debts, its property and bank accounts were distressed.
The main reason for unprofitability is the significant amount of depreciation allowances on objects that were rebuilt and built for the EURO 2012 football finals held in Ukraine.
As a result, on the contracting entities’ claims judicial authorities adopted a decision to recover debt in the amount of UAH 93 million and penalties in the amount of UAH 61.7 million from the sports facility.
Currently, the debt owed by NSC Olympiyskiy to SE Infrastructure Projects Financing under interest-free target loan agreements amounts to nearly UAH 2.231 billion.
As of now the company does not have enough funds to repay debts owed, as its revenues are seasonal in their nature and are used primarily to pay salaries, make utilities payments and to cover other expenses related to the stadium’s maintenance.
