SCM loses UK appeal over USD760m Ukrtelecom payment, but continues legal battle

4 May 2018

Ukrainian conglomerate SCM has lost its appeal at the High Court of London against a USD760 million arbitration decision related to its 2013 takeover of Ukrtelecom, reports In June 2017 the London Court of International Arbitration (LCIA) ruled that SCM owed USD760 million in unpaid debt from the Ukrtelecom transaction to Raga Establishment (formerly Epic Telecom Invest) – owned by Denis Gorbunenko, the former head of bankrupt Ukrainian bank Rodovid – plus USD60.4 million in interest and legal costs. Despite the latest High Court decision, however, SCM says that it will continue to fight its legal case against Raga. The Ukrainian group’s director of international/investor relations, JK Mendoza-Wilson, stated: ‘We are disappointed by today’s decision of the High Court, and yet it does not in any way mean that the arbitration of LCIA came to a proper conclusion in its decision against SCM. As the judge noted, today’s decision is reduced solely to a procedural issue … we will continue to actively defend our position.’ The spokesperson added that ‘the current decision states that the LCIA did not take into account potentially very important evidence’.

Ukraine, Ukrtelecom (incl. TriMob)