On April 17th, the Kyiv Court of Appeal refused to satisfy the appeal complaint of the NBU and left the decision of the Pechersk District Court of Kyiv dated 05.02.2019 without changes, which, at the request of the General Prosecutor`s Office, within the framework of criminal proceeding No. 42014000000001261 (regarding the possible withdrawal of UAH 19 billion of refinancing attracted by Privatbank to the NBU before nationalization), imposed mass arrest on the property of companies directly and indirectly associated with the former Privatbank authorities and their partners.
The Court of Appeal retained the arrest of such assets which were transferred as mortgage/loan by Privatbank authorities to the NBU as the securing of the debts of Privatbank for refinancing:
- almost 1,3 thousand units of railway stock (wagons, railway tanks, platforms, electric locomotives, diesel locomotives, etc.) owned by DniproAzot, Nikopol Ferroalloy Plant, Marganets Mining and Processing Plant, and Ordzhonikidze Mining and Processing Plant;
- 15 land plots of "Skorzonera" LLC (owner of assets at Bukovel resort);
- Borivage Grain Terminal (owned by Agroterminal Logistic LLC);
- beverages and juices plant in Dnipro (owned by "Erlan" LLC);
- an office building in Kyiv owned by Podil-Nerukhomist LLC, and leased by the TV channel "1+1" and other media companies related to it;
- Boeing 767-300 (owned by Pennylane Company - Comercio Internacional LDA);
- a hangar for servicing airplanes (owned by the Dnipropetrovsk International Airport LLC);
- 34 land properties in Odessa region on the "Golden Shore" block owned by Hadzhybey LLC;
- hotels, residential buildings, offices, trade pavilions, land plots, and other real estate objects in different regions of Ukraine, which belong to Privatoffice LLC, Hotel Govtnevuy, Aquaterra LLC, Arlan LLC, Aerobud, Prospect Investment LTD, Ukrinterinvest LTD, Dniprometalservis etc.
During the court proceeding, the NBU insisted that the February arrest of Privat assets should be canceled, given that:
- The Pechersk District Court of Kyiv has already arrested the same property in 2017, which "excludes the need to appeal to the investigating judge with a new petition, since such a preventive measure has already been implemented, and the latter is valid" (quotation);
- the arrest of the disputed property restricts the rights of the NBU, since it "makes it impossible to satisfy its claims due to the mortgage item (mortgage), including through the implementation of an extra-judicial method of foreclosure" (quotation).
Instead, the Kyiv Court of Appeals came to the conclusion that the arrest of the property "does not restrict any rights of the National Bank of Ukraine", and "the evidence of the negative consequences of such a measure for providing a criminal proceeding, as an arrest of property, was not provided by the authors of the appeal and was not established by the board of judges" (quotation).
According to Finbalance, on 2019 March, 22 Pechersk District Court of Kyiv imposed another arrest on the assets of a number of companies directly and indirectly linked with the Privatbank and its partners within the framework of the mentioned criminal proceedings No. 42014000000001261, at the request of the Prosecutor-General`s Office.
The corresponding assets were also transferred to the National Bank as the mortgage/pledge to provide the refinancing debts of Privatbank.
In this case, the question was about land plots, apartments, premises, railway stock, which belongs to Skorzonera LLC, Art-Lab Group LLC, Tech-Trade-Invest LLC, Hadzhybey LLC, Privatoffice LLC, Estate Service LLC, Spectrum-Energo LLC, Prospect Investment LTD, Tovkachiv Mining and Processing Plant, and Nikopol Ferroalloy Plant.
The National Bank of Ukraine announced its intention to appeal the March arrest of the assets of Privatbank and its partners.