On 21 December 2015, the National Bank of Ukraine, upon the proposal of the Deposit Guarantee Fund, issued Resolution No. 914 On Revoking a Banking License and Liquidating UKRAINIAN BANK FOR DEVELOPMENT PJSC.
In view of the fact that the EU Council has applied sanctions against Mr Oleksandr Yanukovych, the sole shareholder of UKRAINIAN BANK FOR DEVELOPMENT PJSC, including through freezing assets, and in order to protect the interests of depositors and other creditors of this Bank, in September 2014, the NBU declared this bank problematic.
UKRAINIAN BANK FOR DEVELOPMENT PJSC has submitted several Action Plans aimed at improving the Bank's performance indicators. However, the above said plans did not include measures to bring the Bank's operations into compliance with applicable laws.
In view of the above, and given the failure by UKRAINIAN BANK FOR DEVELOPMENT PJSC to comply with applicable banking laws, on 27 November 2014, the Board of the National Bank of Ukraine adopted a decision to declare UKRAINIAN BANK FOR DEVELOPMENT PJSC insolvent. On 27 November 2014, the Executive Directorate of the Deposit Guarantee Fund (the DGF) placed the Bank under provisional administration, effective from 28 November 2015.
On 23 January 2015, the DGF approved a resolution plan for UKRAINIAN BANK FOR DEVELOPMENT PJSC, under which this insolvent bank should be resolved through its sale to an investor. Ekosipan LLC, which expressed its intention to acquire UKRAINIAN BANK FOR DEVELOPMENT PJSC, has won a tender to select an investor for this bank.
On 27 February 2015, the DGF adopted a decision to prolong the provisional administration at UKRAINIAN BANK FOR DEVELOPMENT PJSC till 27 March 2015. On 27 March 2015, the DGF amended the resolution plan in terms of the way in which this bank should be resolved. Under the amended plan, UKRAINIAN BANK FOR DEVELOPMENT PJSC will be wound up and the DGF will make compensation payouts to depositors. The DGF issued a proposal to the NBU to revoke the banking license and put the bank into liquidation.
However, the NBU received a ruling by the Kyiv Economic Court of 1 April 2015 under case No.910/8086/15-g, which prohibited the regulator from revoking the banking license held by UKRAINIAN BANK FOR DEVELOPMENT PJSC and liquidating this bank during the period when the case was in progress at the court (court proceedings initiated upon a claim filed by Ekosipan LLC against the DGF).
Following a receipt of the Court's ruling, the NBU and the DGF took steps to challenge this ruling. On 16 December 2015, the Higher Economic Court of Ukraine issued a ruling in respect of case No.910/8086/15-g, whereby rejecting a claim by Ekosipan LLC (The NBU received a ruling on 21 December 2015).
In view of the above, in accordance with Article 15 of the Law of Ukraine On the National Bank of Ukraine, Article 77 of the Law of Ukraine On Banks and Banking, Article 44 of the Law of Ukraine On the Deposit Guarantee System, on 21 December 2015, the NBU issued Resolution No. 914 On Revoking a Banking License and Liquidating UKRAINIAN BANK FOR DEVELOPMENT PJSC