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Stockholm court to hear Kolomoiskyy vs Ukraine lawsuit early next year

Privat seeks $ 4.7bn in compensation for the loss of control in Ukrnafta.

Stockholm court to hear Kolomoiskyy vs Ukraine lawsuit early next year
Ihor Kolomoisky
Photo: Photo: Max Levin

The Arbitration Institute of the Stockholm Chamber of Commerce in 19 - 26 February next year will hear a $ 4.7bn lawsuit against Ukraine filed by the close to Ihor Kolomoyskyy minority shareholders in the company Ukrnafta, Interfax-Ukraine said on 13 September with a reference to the Eurobond prospectus of Ukraine.

The lawsuit against Ukraine was announced back in January 2015, when the parliament adopted a bill amending the law on joint-stock companies, allowing a meeting of shareholders to be held with a quorum of 50% plus one share. The bill allowed the state to regain control of the company Ukrnafta.

Susequently, Ukrnafta minority shareholders controlled by Ihor Kolomoyskyy's Privat group (Littop Enterprises, Bridgemont Ventures, Bordo Managament), filed a lawsuit against the Ukraine in the Stockholm arbitration.

Cypriot companies named at least four main reasons for the claim in Ukraine: the expropriation of the gas produced by Ukrnafta or the purchase of such a gas at low prices by the NAC Naftogaz Ukrainy for several years; change the corporate structure of Ukrnafta via changes in the minimum quorum for the general meeting of shareholders from 60% to 50%; the removal of persons nominated by investors from Ukrnafta management; and the increase in rental payment for the use of mineral resources.

In the case against Ukrnafta minority shareholders, Ukraine will be represented by UK law firm Latham & Watkins.

50% +1 share in Ukrnafta is owned by Naftogaz Ukrainy, 13.6% belong to Littop Enterprises Ltd. and Bridgemont Ventures Ltd. and 12,9% by Bordo Management Ltd..

9.9% of the company is owned by other shareholders.

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