Intl Arbitration Tribunal dismisses Kolomoisky-linked $700 mln lawsuit against Ukraine – Ministry of Justice

The International Centre for Settlement of Investment Disputes (ICSID) has permanently dismissed the arbitration case filed by Gilward Investments B.V., a company linked to Ukrainian oligarch Ihor Kolomoisky, against Ukraine, due to non-payment of the arbitration fee, Ukraine's Ministry of Justice announced Friday.

The lawsuit, initially filed in 2015 by Gilward Investments B.V., whose ultimate beneficial owners include Ihor Kolomoisky and Hryhoriy Hurtovy, sought approximately $700 million in damages.

According to the Ministry, the claim was based on alleged unlawful actions by Ukrainian authorities that purportedly led to the bankruptcy of private airline AeroSvit. The plaintiffs cited restricted access to international flight routes, the allegedly unsubstantiated granting of exclusive rights to a competitor (Ukraine International Airlines), inaction by the State Property Fund as a shareholder, expropriation of land at Boryspil Airport, delays in VAT refunds, and interference in bankruptcy proceedings.

In 2017, at Ukraine's request, the tribunal agreed to bifurcate the case into a jurisdictional phase and a merits phase. In April 2022, proceedings were suspended due to Russia's full-scale invasion, but resumed in May 2023.

Working in close coordination with the State Aviation Service, Ukraine's Ministry of Justice and its legal counsel filed a response in March 2024 demonstrating that AeroSvit's bankruptcy resulted from internal financial insolvency, mismanagement, and actions by individuals connected to the claimant – not from state interference.

In 2024, the parties exchanged documents during the evidence disclosure phase. However, the Ministry noted that the claimant failed to disclose all the documents Ukraine had requested, despite a tribunal order to do so.

In July 2024, the tribunal set a procedural schedule for the next steps. However, the claimant repeatedly sought extensions, citing lack of access to Kolomoisky, who was in Ukrainian custody at the time. The Ministry of Justice, in turn, submitted evidence that the claimant's legal representatives did have access to him.

Despite these delays, the tribunal ordered both parties to pay a $150,000 arbitration fee by November 12, 2024. The claimant failed to make the payment, leading to the suspension of proceedings in January 2025 and their final termination shortly thereafter.

Ukraine was represented in the case by international law firm Latham & Watkins LLP and national firm Sayenko Kharenko.