The Supreme Court has confirmed that it is impossible to return state-owned PrivatBank to its former owners.
On 26 February 2025, the Supreme Court dismissed the cassation appeal of the former co-owner of PrivatBank, Igor Kolomoisky, and upheld the decision of the Court of Appeal, which had closed the proceedings in a lawsuit to appeal against state authorities’ decisions to resolve PrivatBank with state participation.
The Supreme Court’s ruling is final and not subject to appeal.
As a reminder, on 15 November 2023, the Sixth Administrative Court of Appeal overruled the decision of the District Administrative Court of Kyiv, dated 18 April 2019, that satisfied the lawsuit filed by Ihor Kolomoiskyi against the National Bank of Ukraine, the Cabinet of Ministers, the Deposit Guarantee Fund, and the National Securities and Stock Market Commission. The 18 April 2019 decision declared unlawful and overturned the state authorities’ decision to resolve insolvent PrivatBank with state involvement. The proceedings in the lawsuit were closed.
“The NBU welcomes the decision of the Supreme Court, which demonstrates the establishment of the rule of law in Ukraine. I would like to underline that the decision to resolve insolvent PrivatBank with state participation was made in accordance with current legislation and endorsed by the National Security and Defense Council of Ukraine and the government to ensure financial stability and preserve people’s money. The Supreme Court confirmed the legality of closing the proceedings on the basis of Law of Ukraine No. 590-IX On Amendments to Certain Laws and Regulations of Ukraine Concerning the Improvement of Banking Regulation Framework. Thus, the court has once again confirmed the impossibility of returning PrivatBank to the ownership of its former shareholders. It should also be noted that all of the decisions made by the authorities regarding PrivatBank’s nationalization are valid,” said NBU Governor Andriy Pyshnyy.
As a reminder, on 18 April 2019, in the lawsuit by Kolomoiskyi, the District Administrative Court of Kyiv declared unlawful and annulled the government’s decision to resolve insolvent PrivatBank with state participation. In making that ruling, the court ignored PrivatBank’s recapitalization needs that had been established by the NBU. The court also neglected to take into account the failure by PrivatBank and its shareholders to implement the financial recovery program.
The NBU filed an appeal on 24 May 2019.
On 2 March 2021, the Sixth Administrative Court of Appeal suspended proceedings under the lawsuit until the Constitutional Court of Ukraine heard another lawsuit, filed by 64 lawmakers, that questioned the constitutionality of certain provisions of the Law of Ukraine No. 590-IX On Amendments to Certain Laws and Regulations of Ukraine Concerning the Improvement of Banking Regulation Framework.
On 1 June 2022, the Supreme Court canceled the ruling on suspending the proceedings, making it possible for the court of appeal to continue hearings in the case.
On 15 November 2023, the Sixth Administrative Court of Appeal overruled the decision of the District Administrative Court of Kyiv, dated 18 April 2019 and closed the proceedings in the lawsuit.
On 18 December 2016, the NBU took the decision to recognize PrivatBank as insolvent and resolve it with state involvement. The NBU suggested that the government come into ownership of the bank’s shares.
This decision was substantiated by the fact that the bank’s regulatory capital had moved into negative territory. The shortfall in PrivatBank’s capital had been confirmed by an independent, internationally recognized audit firm, among other things. PrivatBank’s shareholders had failed to meet their commitments to ensure its financial recovery.
The same day, the Cabinet of Ministers of Ukraine passed a decision allowing the state to participate in PrivatBank’s capital. The state took over PrivatBank in accordance with Article 411 of the Law of Ukraine On Households Deposit Guarantee Scheme. This decision helped avoid systemic risks to the banking sector and secure Ukraine’s financial stability. The state has recapitalized the bank for more than UAH 155 billion