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Supreme Court Sustained NBU Inspection of PrivatBank in October 2016

On 26 July 2022, the cassation administrative court of the Supreme Court has cancelled the decision of courts of previous instances on recognizing the resolution of the National Bank of Ukraine on the inspection of CB PrivatBank JSC and actions of the regulator during the inspection in October 2016 and closed the proceeding on contesting of said resolution.

At the same time, as to other claims on contesting actions of the regulator during the inspection the decision was adopted to deny the claim.

"The National Bank of Ukraine welcomes the decision of the Supreme Court sustaining that the regulator’s actions were lawful during the inspection of PrivatBank in October 2016 before the nationalization," said Viktor Hryhorchuk, Head of Litigation Office, NBU Legal Department.

Please note that in October 2016, the NBU launched an unscheduled inspection of PrivatBank that found major violations of law. Also, the inspection found the bank’s capital was negative.

In May 2017, Triantal Investments Ltd – a Cyprus company controlled by former shareholders of PrivatBank – contested the resolution of the NBU on the inspection of PrivatBank and the regulator’s actions during the inspection.

On 2 March 2018, the District Administrative Court of Kyiv city has satisfied the claim of the company in full. This decision was sustained by the resolution of the Sixth Apelet Administrative Court on 13 May 2019. The NBU did not accept the court decision and filed a claim to the Supreme Court that sustained the regulator’s claim.

For reference:

The state took over PrivatBank in accordance with Article 411 of the Law of Ukraine On Households Deposit Guarantee System. This decision helped avoid systemic risks to the banking sector and secured Ukraine’s financial stability.


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