Court cancels arrest of Bank Finance&Credit's funds in dispute with UIA

The Higher Economic Court of Ukraine on August 4 issued a ruling in favor of Bank Finance and Credit in a dispute with PJSC Ukraine International Airlines (UIA, Kyiv), canceling the arrest of the bank's funds, and returned the case for retrial, according to FCLEX law firm, representing the interests of the bank.

According to the report, in January 2015 UIA appealed to the court with a claim to terminate the contract for servicing at Bank Finance and Credit and recover the remaining funds of UAH 180 million from the bank accounts in connection with its alleged unjustified failure to perform UIA's payment orders and, consequently, the violation of the contract.

The court of first instance and the court of appeals upheld the UIA claim and arrested the bank's assets on more than 65 accounts, including the NBU account. However, due to the incomplete investigation into the case by the courts and insufficient materials provided by the parties, the court returned the case for retrial, FCLEX specified.

"According to a recent court hearing, the Higher Economic Court of Ukraine partially satisfied the bank's appeal, thus actually unblocking its accounts, and did not permit the unjustified recovery of funds from the bank, which is now experiencing hard times," reads the report.