The Supreme Court has issued a final ruling in the Euroenergotrade case

The Supreme Court issued a final ruling in the case concerning the obligations of Euroenergotrade LLC, dismissing the company’s cassation appeal and confirming the legality of the transfer of the right to claim the debt to Park Lane LLC. Previously, in this case, more than 1 billion UAH in non-performing debt was returned to the state-owned “Ukrgasbank” (UGB), which was paid in full by the mortgagor.

In 2020, the bank granted Euroenergotrade LLC a loan of over 1.2 billion hryvnias secured by accounts receivable for gas supplies; but by the end of 2023, the company had ceased servicing its obligations, and the debt had grown to nearly 1.35 billion hryvnias. After a settlement agreement was reached and subsequently breached by the debtor, Park Lane LLC paid off the debt, as a result of which the creditor’s rights were transferred to it through subrogation.

Oleksandr Rogachov, director of UGB’s Non-Performing Assets Resolution Department, noted that the court’s decision confirmed the legal consequences of the mechanism applied and established an important precedent for the banking system. The beneficial owner of Park Lane LLC, Israeli investor Ofer Kertzner, called the verdict a positive signal for planning future projects in Ukraine. According to the bank, as a result of the agreement, over 550 million hryvnias in taxes were transferred to the budget.

Source: UGB Ukrgasbank’s Facebook post.

It was previously reported that a new legal dispute had erupted over more than one billion hryvnias in debt owed to Ukrgasbank, in which the company “Euroenergotrade” is attempting to challenge the pledge agreement even after the bank had already received the funds. The situation appears to be an attempt to reopen a financial matter that has already been settled through legal channels.

The National Bank fined Ukrgasbank and four non-bank financial institutions.