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Government files lawsuit to recover Ukrtelecom

The State Property Fund says the buyer did not fulfil the conditions of privatization.

Government files lawsuit to recover Ukrtelecom
Photo: Photo: ITC.ua

The State Property Fund of Ukraine filed a lawsuit with the Economic Court of Kyiv against LLC ESU, PJSC State Export-Import Bank of Ukraine on termination of the contract of sale of the telecommunications company Ukrtelecom.

In a release, SPF said that the buyer failed to comply with the terms and conditions stipulated in the contract of sale of the stake in Ukrtelecom between the SPF and ESU LLC, and Ukrtelecom's post-privatization development concept, which has been an integral part of the privatisation deal.

The SPD said it will also seek a 2.17bn hryvnia penalty.

According to the official judicial website, the court will be chaired by the judge Valeriy Pinchuk.

In early 2011, the SPF sold Ukrtelecom for 10.575bn hryvnya to ESU, the Ukrainian subsidiary of the Austrian EPIC, which in turn belonged to five Austrian residents.

Two years later, Rinat Akhmetov's SCM bought the company that owns the stake in Ukrtelecom.