Government takes steps to prevent repayment of Surkis companies' Privatbank deposits

Ukraine’s Justice Ministry has filed an appeal to the
ruling of Pechersk court in Kyiv that obliged Privatbank (PRBANK) to repay
about USD 350 mln in deposits to companies controlled by the Surkis family,
minister Denys Malyuska reported on Sept. 8. Recall, the court ruled on Sept. 2 that Privatbank should repay
the bailed-in deposits and accumulated interest to six British companies
controlled by Surkis brothers, as part of the security of their claim against
the bail-in. The companies were recognized as related parties of Privatbank and
their deposits in the bank amounting to about USD 250 mln were bailed-in after
the bank was recognized insolvent in December 2016.

In addition to that, the Justice Ministry has filed a
complaint against Pechersk court judge Serhiy Vovk to the High Council of
Justice, Malyuska wrote in his blog. Also, Ukraine’s Anticorruption Bureau has
opened a criminal investigation into an alleged attempt to seize the property
of Privatbank, with judges and the executives of Surkis-related companies being
among the suspects, Interfax-Ukraine wrote on Sept. 8.

On top of that, MPs have registered a draft law that
prohibits payments on the court cases that have not been considered on their
merits, Malyuska reported. He called lawmakers to vote as soon as possible for
the bill, which already has been called  the “anti-Surkis law”.

Meanwhile, the Supreme Court ruled on Sept. 8 to stop
the enforcement of the Pechersk court ruling from February 2017, based on which
Privatbank should repay the deposits of the six Surkis-related companies. This
became possible after the Supreme Court agreed to initiate a cassation hearing
on the 2017 ruling, the court wrote on its official page on Sept. 9.

Alexander Paraschiy: A solid reaction from the government to an apparently ill-grounded
court ruling that costs about UAH 10 bln to the state bank is a good signal.
Such a reaction significantly decreases the chances that the Surkises will be
able to withdraw money from the bank, though it does not completely rule out
such an event.