Supreme Court rules Ukrtelecom does not have to pay UkrEximbank UAH1.1bn

29 Oct 2018

Ukraine’s Supreme Court has dismissed state-owned UkrEximbank’s UAH1.1 billion (USD39 million) claim against nationwide fixed line operator Ukrtelecom, the Kyiv Post reports. Ukrtelecom had failed to fulfil its 2015 pledge to buy out the bonds of its holding company ESU (owned by conglomerate SCM) for UAH2 billion from UkrEximbank and another state bank Oshchadbank, but the apex court ruled that UkrEximbank cannot charge Ukrtelecom for bonds that the company itself never bought. The decision partly found in favour of UkrEximbank, obligating Ukrtelecom to pay fines and interest of UAH880,000.

According to a memorandum signed in September 2015 between Ukrtelecom, ESU, UkrEximbank and Oshchadbank, money from the planned sale of Ukrtelecom’s 3G cellular division TriMob – which subsequently failed – was earmarked for buying out ESU bonds. ESU continues to be involved in a similar UAH2.83 billion legal dispute with UkrEximbank and Oshchadbank over the bonds – the maturity date of which expired in March 2017.

Ukraine, Ukrtelecom (incl. TriMob)