Arbitration tribunal closes $700M case filed by Kolomoisky's company against Ukraine

The Ukrainian Justice Ministry announced this on Telegram, Ukrinform reports.

"The arbitral tribunal, operating under the auspices of the International Centre for Settlement of Investment Disputes (ICSID), has issued a decision to permanently terminate the proceedings in the case brought by Ihor Kolomoisky's company against Ukraine. The basis for this decision was the claimant's failure to pay the mandatory arbitration fee, despite repeated warnings from the tribunal," the statement said.

The ministry recalled that in 2015, Gilward Investments B.V., whose ultimate beneficial owners are Ihor Kolomoisky and Heorhii Hurtovyi, filed the claim.

The lawsuit, valued at around $700 million, was based on allegations of unlawful actions by the Ukrainian authorities that allegedly led to the bankruptcy of PJSC Aerosvit Airlines. The claims included restrictions on access to international air routes, granting exclusive rights to competitor UIA without regulatory justification, inaction by the State Property Fund as a shareholder, expropriation of a land plot at Boryspil Airport, delays in VAT refunds, and interference in the bankruptcy proceedings.

According to the ministry, in 2017, at Ukraine's request, the tribunal decided to split the proceedings into two phases — jurisdiction and merits.

In April 2022, the proceedings were suspended due to Russia's full-scale invasion of Ukraine but resumed in May 2023. In March 2024, the Ministry of Justice, together with legal counsel and in close coordination with the State Aviation Service, submitted a statement of defense proving that Aerosvit's bankruptcy was caused solely by internal financial insolvency, ineffective management, and actions by individuals linked to the claimant, rather than by state interference.

Throughout 2024, the parties exchanged documents as part of the disclosure stage. The claimant failed to produce all documents requested by Ukraine, despite a tribunal order to do so. In July 2024, the tribunal set a procedural timetable for the next steps. However, the claimant repeatedly sought extensions, citing lack of access to Kolomoisky, who at the time was in custody in Ukraine.

The Ukrainian Justice Ministry provided substantiated evidence that the claimant's representatives did have such access.

"Despite delays, the tribunal ordered both parties to pay an arbitration fee of $150,000 by November 12, 2024. The claimant failed to make the payment, resulting in a suspension of the proceedings in January 2025, followed by a final termination. This permanently ended the case initiated by the Ukrainian oligarch in an attempt to shift responsibility for bankruptcy losses — caused by internal insolvency and mismanagement — onto the state," the ministry said.