Court removes block on Ukrtelecom shares related to political investigation

18 Apr 2018

A Ukrainian court has reversed a previous legal judgement which ‘froze’ the 92.79% controlling stake in nationwide fixed operator Ukrtelecom held by domestic conglomerate SCM as part of an investigation into previous alleged misappropriation of state funds. The ‘arrest’ of the shareholding related to a probe by the Prosecutor General’s Office focusing on possible embezzlement connected to Ukrtelecom’s original privatisation in 2011 during the presidency of Viktor Yanukovich (who went into exile in Russia in 2014). Liga.net reports that the reversal decision of the Pechersk District Court is not subject to appeal. Note, however, that SCM’s Ukrtelecom shares have separately been ‘arrested’ in the course of legal proceedings with plaintiffs attempting to recover money from the telco’s 2013 sale to the Ukrainian conglomerate, including state banks Ukreximbank and Oschadbank, and Raga Establishment (formerly Epic Telecom Invest) – owned by former Ukrainian banker Denis Gorbunenko.

Ukraine, Ukrtelecom (incl. TriMob)