VR Capital will appeal against KDAC’s illegal decision on Ukrzaliznytsia debts



Kiev, June 11, 2021. VR Capital considers illegal and will appeal the decision of the Kyiv District Administrative Court (KDAC) of June 4 on lifting the arrest of funds from Ukrzaliznytsia (UZ) and prohibiting banks from blocking any banking operations and to seize UZ funds.

The KDAC decision is unprecedented for the Ukrainian banking sector, as it effectively prohibits banks from banking. The KDAC had neither legal basis nor competence to examine this case and take such a decision vis-à-vis the executor, and even more vis-à-vis the banks.

VR Capital believes that the unprecedented and absurd litigation initiated by UZ as part of an administrative proceeding is a continuation of UZ’s attempts to delay the resolution of the debt issue to VRGP and to avoid the liability of its contractual obligations. The UZ is trying in any way to lift the arrest imposed by the executor in accordance with the law.

By adopting such a decision, the KDAC exceeded its powers and, on its own initiative, interpreted the previously issued injunction against the recovery of UZ funds as also including a prohibition for the executor to impose seizure. . At the same time, the court did not at all justify the ban on banks from banking.

As previously reported, the seizure of funds from UZ was imposed as part of the enforcement of court decisions on the recovery of UZ debts in favor of the American investment fund VR Global Partners (VRGP). UZ’s debt to VRGP was upheld by Supreme Court rulings in April this year. As part of the execution procedure, the executor ordered the seizure of UZ’s accounts in banking establishments.

VR Global Partners notes that the blocking of the execution of court decisions by the KDAC may constitute grounds for appealing to the ECHR and obtaining compensation by VRGP from the Ukrainian State for damages.

VR Global Partners, LP (“VRGP”), is an investment fund managed by VR Advisory Services Ltd (“VRASL”). VRASL is registered as an investment advisor with the United States Securities and Exchange Commission and VR Advisory Services (UK) LLP, an investment sub-advisor for VRGP and certain other funds, is authorized by the UK Financial Conduct Authority . VRGP was launched in May 1999 and has received over 15 industry awards in New York and London for its performance over the years, including, most recently, EuroHedge’s 2020 award for long-term performance. (20 years) among global macro and bond markets. and relative value funds.

VR Capital is an international asset management company serving a client base of institutional investors with approximately $ 5 billion in investor assets under management through mutual fund structures. VR Capital is one of the largest Western investors in Ukraine with an equity portfolio of over $ 1 billion. With a proven track record of over 22 years, VR Capital focuses on investments in emerging and developed markets. The company operates through its main offices in New York and London, and more than 98% of its assets under management come from investor relations in the United States and Western Europe.

For more details, please contact +380 95 618 15 64


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