On 10 December 2019, the District Administrative Court in Kyiv city refused the claim of SAMTEK-SERVIS LLC on declaring unlawful and cancelling the decision of the National Bank of Ukraine (NBU) on recognizing the plaintiff a related party of CB PrivatBank PJSC prior to nationalization.
On 13 December 2016, NBU Commission on identifying bank related parties (RP) and checking RP transactions passed Decision No. 105 recognizing SAMTEK-SERVIS LLC a related party.
Later on, funds on accounts opened on the name of SAMTEK-SERVIS LLC were exchanged by an authorized DGF officer for secondary offering shares and sold to the state according to Article 41-1 of the Law of Ukraine On Households Deposit Guarantee System as part of resolution of CB PrivatBank PJSC with the state participation.
Unwilling to accept this decision, SAMTEK-SERVIS LLC contested it in the District Administrative Court in Kyiv city. However, the court refused the claim on the following grounds:
- The NBU is authorized to recognize individuals and legal entities as related parties of a bank.
- In line with Article 52 part 1 paragraph 6 of Law of Ukraine On Banks and Banking, SAMTEK-SERVIS LLC is a related party of CB PrivatBank PJSC, whereof the latter has repeatedly informed the NBU.
The NBU expects that this precedent will be applied by other courts hearing respective claims on related parties of CB PrivatBank PJSC. At this time, 40 claims have been filed against the NBU contesting relatedness to CB PrivatBank PJSC.
For information on NBU pending cases, as well as those contesting relatedness to CB PrivatBank PJSC go to http://storm.bank.gov.ua/matrix.
For reference:
The decision to nationalize PrivatBank PJSC, as well as other related decisions, was prepared and approved by central government authorities in strict compliance with Article 41.1 of the Law of Ukraine On the Household Deposit Guarantee System.
This decision protected over 20 million Ukrainian citizens who keep their money in this bank and use its services. That includes, in particular, 3.2 million pensioners and 1.6 million individuals from vulnerable social groups. All of these individuals have retained full access to their bank accounts (and funds).
This decision helped avoid systemic risks to the banking sector and secured Ukraine’s financial stability.
The timeline of events around PrivatBank is available here: http://pb.bank.gov.ua