Addressing the claim by PrivatBank, the sixth administrative court of appeals suspended the appeal against the Kyiv District Administrative Court’s decision as of April 18, 2019, on the cancellation of PrivatBank’s nationalization. The reason was the bank’s claim in which it requested the Grand Chamber of the Supreme Court to first hear the case against the Surkis family.
According to BusinessCensor, this was reported by Victor Grygorchuk, Head of the Complaint and Limitation Department of Judicial Department of the National Bank.
On December 16, the Grand Chamber of the Supreme Court announced a break until January 31 in hearing a cassation appeal of the NBU, the Finance Ministry and PrivatBank against ruling of the courts of lower instances in litigation with the Surkis family. The postponement was due to the need to study the case materials by the PGO.
The Surkis family succeeded in the courts of lower instances’ ruling in favour of the annulment of the decisions of the NBU by which the central bank recognized them persons affiliated with PrivatBank and invalidating the agreements on exchange of their funds in the bank in the amount over ₴1 billion to the bank’s shares (bail-in) later purchased by the state for ₴1.
PrivatBank, according to available information, had previously executed the decision of the trial court and the court of appeal in favor of the Surkis family. However, for the National Bank, the Finance Ministry, and the bank, in addition to these payments, it is important to defend the legality of the bail-in procedure, if the bank loses to the Surkis family, it is more likely that other participants in this procedure will go to court for a total of over ₴29 billion. In addition, its recognition as illegal will call into question the entire nationalization of PrivatBank.
According to the senior legal adviser of the legal department of the NBU Serhiy Kolosiuk, today there are already about 50 bail-in trials for a total of ₴20 billion.
Declaring the nationalization illegal will further lead to the IMF rejecting another tranche.