Privatbank files another claim against former owners for USD 5.5 bln

Privatbank (PRBANK) reported on Apr. 3 it has filed a
new claim in a Cyprus court against its former owners, seeking damages of USD
5.5 bln. The defendants in the claim are Ihor Kolomoisky and Gennadiy
Bogolyubov, the former majority shareholders; Timur Novikov, a former top
executive of the bank; and two Cyprus-based companies, PrimeCap Limited and
Duxton Holdings Limited. The claim was related to loans provided by the bank to
Cypriot companies in 2013-2016, none of which have been repaid. The total
amount of the transactions was USD 2.34 bln, the bank reported.

This claim brings the combined amount claimed by the
bank against Kolomoisky and Bogolyubov in England, Cyprus, the U.S. and Israel
to a total of over USD 10 bln, Privatbank reported.

Alexander Paraschiy: At this
stage, it is hard to estimate the likelihood of the bank’s success in its
litigation against its former owners, though it seems like the chances are
high. The rising potential bill for the former shareholders could make them
even more aggressive in seeking the return of the bank under their control in
order to stop all international litigations. They are currently engaged in the
key task on their way to this goal, which is blocking the adoption of the
so-called anti-Kolomoisky bill by Ukraine’s parliament. Kolomoisky and his partners
are likely to be investing a lot to lobby for the failure of the bill, whose
approval is essential for Ukraine’s upcoming deal with the IMF.

The next couple of weeks will show whether the
parliament and other power brokers can withstand the pressure from the former
owners of Privatbank in order to preserve the country’s stability.