Privatbank claim against former owners up to $4.5 bln as hearings in London are moved to June 2023

KYIV. May 25 (Interfax) - A claim of the state-run Privatbank (Kyiv) against former owners Ihor Kolomoysky and Henadiy Boholyubov has grown to almost $4.5 billion as the hearing of the claim merits in the High Court of Justice in London is moved to June 2023, the bank press service said in a statement.

"Meanwhile, the interest on the claim continues to accrue about $500,000 daily, which would increase the amount of the claim to almost $4.5 billion, and the writ of worldwide seizure of the respondents' assets remains in effect," the bank said.

The first day of preliminary hearings took place on March 28, 2022, ahead of the hearing of the claim merits at the High Court in London, the press service said. The preliminary hearings aim to ensure the highest efficiency of the hearing of the claim merits, it said.

The court in London focused on the attempt of the respondents to delay the hearing of claim merits, which was due to take place in June 2022, because of the Ukraine situation. The request was granted by the British court.

As reported earlier, Privatbank, which was nationalized in December 2016, filed a claim with the High Court of Justice in London against former owners Kolomoysky and Boholyubov and six British companies presumably connected to them and achieved the court's writ on worldwide seizure of the respondents' assets worth more than $2.5 billion.

Yet the High Court in London decided on December 4, 2018, that the Privatbank claim did not fall under its jurisdiction, as it believed the claim was filed against British companies as a way to draw Kolomoysky and Boholyubov in the proceeding. The bank appealed the ruling, and the Appeal Court of England and Wales took its side on October 15, 2019. The writ of worldwide seizure of the assets will stay valid until the court rules on the claim merits.

Judges of the Appeal Court decided that the bank had a case and could claim full reimbursement in the amount of $1.9 billion ($3 billion, including the interest). Kolomoysky and Boholyubov tried to appeal the ruling in the High Court.

The Ukrainian government decided on December 18, 2016, based on the proposal from the Ukrainian National Bank and former Privatbank shareholders Kolomoysky and Boholyubov, that the largest financial institution of Ukraine be nationalized. The former bank owners called the nationalization, which fully deprived them of their shares, unlawful, while Privatbank and the government demanded that they compensate the damage. The sides are in litigation both in Ukraine and in foreign jurisdictions.