Top Ukrainian banks sue Russia for loss of Crimean assets

Ukraine’s biggest banks Privatbank (PRBANK) and Oschadbank (OSCHAD) reported they filed lawsuits against the Russian government to compensate their losses from its illegal annexation of Crimea, according to news reports on July 8. Both banks reportedly referred to Russia’s breach of its 1998 agreement with Ukraine on mutual encouraging and protecting cross-border investments.

Oschadbank estimated its losses from annexation at USD 670 mln at least, its CEO reported on July 9. He stated the case may take a couple of years.

In response, the Russian Justice Ministry stated on July 9 it will refuse to recognize Privatbank’s claim based on the 1998 agreement since the investments were not made on the territory of Russia, but on the territory that “then belonged to Ukraine” and “today is a part of the Russian Federation, as a result of the will of people.”   

Alexander Paraschiy: It’s easy to blame the Ukrainian government for taking so long in preparing its complaints and lawsuits against Russia, but the delays with Privatbank – with its owners having among the most efficient legal teams in Ukraine – suggests the task is indeed extremely complicated. It took more than a year for the banks to prepare the claims, and it definitely will take much more time for them to get a positive result.