Customers Cypriot banks could not collect money in Ukraine.
Marfin Bank and Bank of Cyprus managed to unlock their assets and shares in the course of litigation with the companies who have had a claim to their parent structures. The Supreme Economic Court of Ukraine ruled that these conflicts should be resolved exclusively in the courts of Cyprus. And there are minimal chances to return the money - the Cypriot authorities last year conducted a forced restructuring and write-offs of clients' money.
Judicial conflict between the Ukrainian banks with Cypriot capital and customers for their parent companies, which tried to bring the hosted in Cyprus means over. Back in May 2013, the Economic Court of Kiev froze shares, movable and immovable property Marfin Bank (owned by the Cyprus Popular Bank) and the Bank of Cyprus (Bank of Cyprus) for claims companies "RVTrans" and "Premium Smart", respectively, to seek a total of $ 40 million from their parent institutions.
Yesterday at Marfin Bank reported that in January 15 Supreme Economic Court (SEC) took the side of the bank and canceled the decision of the first instance and appeal. The court decided that since the dispute arose around the agreements concluded in the Republic of Cyprus, it is not subject to the jurisdiction of courts of Ukraine. "The conflict is uniquely permanently closed against Marfin Bank. We see no additional risk with respect to the bank", - said the press service of the Marfin Bank. General Director of "RVTrans" Roman Lyaschenko yesterday commented on the decision of the court.
A similar conclusion SEC 9 December came in the study of the case of the Bank of Cyprus. Court overturned the decisions of the previous courts, recognizing their findings as inaccurate and because the dispute arose between the parties in Cyprus, he dismissed the case. "This judgment removes the risks associated with the case, in particular the arrest of shares of the Bank of Cyprus. Assume that the company may bring an action before the court in Cyprus", - said the head of the Legal Department of the Bank of Cyprus Nicholas Shiyanyuk.
Unless the parties have agreed on a different jurisdiction, the court must consider the dispute on the location of the defendant, the lawyers explain. "Trying" RVTrans "to get a decision on such dispute in the Ukrainian courts is a procedural speculation and contrary both to the laws of Ukraine and its international commitments. Similar attempts were made by the owners of the frozen funds in other countries, particularly in Russia, but also did not succeed, "- says the International Advisor law firm Chadbourne & Parke LLP Olga Vorozhbit.- plaintiff is entitled to apply the same requirement to the competent court of the Republic of Cyprus, but the chances win such a dispute in that jurisdiction negligible. This is due to the plaintiff's claims are absolutely groundless, and the existing jurisprudence of Cyprus. " Last spring, the government of Cyprus held a forced restructuring, in which it was written off and converted into shares of total deposits 47% Bank of Cyprus, to which it was decided to attach Syprus Popular Bank.
SEC decision, however, does not mean that investors Cypriot banks have lost the right to judicial protection and realization of the rights of the creditor. "Conflict of laws rules of private international law say that the potential on the territory of Ukraine may be a dispute about the debt collection of Cypriot companies provided within the territory of the Ukrainian property of a foreign legal person which may foreclose. At the same time, in the presence of bankruptcy proceedings to a foreign parent company disputes relating to the satisfaction of creditors' claims at the expense of the property located in Ukraine, clearly can not be considered in Ukraine, as the procedure of liquidation of an insolvent legal entity by the rules of conflict of laws rules are the exclusive jurisdiction of the courts in the location of the parent company, "- says the law firm partner," SK GROUP "Julia Kurylo.
Removing the attachment of assets and shares of Marfin Bank and Bank of Cyprus reduces the risks for potential investors, who since last year have been negotiating with the Cypriots about their purchase. According to the government's strategy of Cyprus, Bank of Cyprus and the Cyprus Popular Bank should sell their "daughter" of Russia, Ukraine, Romania, the United Kingdom and other countries (see. "Kommersant" on April 1 2013 years). "Disposal of shares in the absence of arrests is the right owner of such securities. The possible sale of shares of the bank after the abolition of arrest should not create problems for their potential buyer, "- said Mrs. Kurylo. According to "Kommersant", the Cypriots have already reached agreement on the sale of the Bank of Cyprus, Alfa-Bank (see details. pg. 1). The main contender for the Marfin Bank remains banker Nikolay Lagun which through M & A transactions is increasing the position of Delta Bank. In Marfin Bank told "Kommersant" that the question of negotiating the sale of their shares within the competence of Cyprus Popular Bank.