The Ministry of Justice of Ukraine reported this on Telegram, Ukrinform reports.
“An arbitral tribunal operating under the auspices of the International Centre for Settlement of Investment Disputes (ICSID) has issued a decision to terminate proceedings in a case filed by Igor Komoinskyi’s company against Ukraine. The basis for the decision was the plaintiff’s failure to pay the mandatory arbitration fee, despite repeated warnings from the tribunal,” the statement said.
The department recalled that in 2015 the lawsuit was filed by Gilward Investments BV, whose ultimate beneficiaries are Igor Komoisky and Georgy Gurtovoy.
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The lawsuit, which amounted to approximately $700 million, was based on accusations of illegal actions by the Ukrainian authorities that allegedly led to the bankruptcy of PJSC Aerosvit Airlines. The claims included restricting access to international air routes, granting exclusive rights to a competitor, the airline MAU, without regulatory grounds, inaction by the State Property Fund as a shareholder, seizure of a land plot at Boryspil Airport, delays in VAT refunds, and interference in bankruptcy proceedings.
According to the ministry, in 2017, at Ukraine’s request, the tribunal decided to divide the proceedings into two phases: jurisdiction and the merits of the case.
In April 2022, the case was suspended due to Russia’s full-scale invasion of Ukraine, but was resumed in May 2023. In March 2024, the Ministry of Justice, together with legal advisers and in close cooperation with the State Aviation Service, filed a response arguing that Aerosvit’s bankruptcy was caused solely by internal financial insolvency, ineffective management and the actions of persons associated with the plaintiff, and not by state intervention.
During 2024, the parties exchanged documents as part of the disclosure phase. The claimant did not provide all the documents requested by Ukraine, despite the tribunal’s order. In July 2024, the tribunal set a procedural timetable for further action. However, the claimant repeatedly requested an extension of the deadline, citing a lack of access to Komoinskyi, who was then in custody in Ukraine.
The Ministry of Justice of Ukraine provided substantiated evidence that the plaintiff’s representatives had such access.
“Despite the delays, the tribunal ordered both parties to pay the arbitration fee of US$150,000 by 12 November 2024. The claimant failed to pay the fee, which resulted in the proceedings being stayed in January 2025, followed by their final dismissal. This finally brought to an end the case brought by the Ukrainian Igarkh in an attempt to shift responsibility to the state for bankruptcy losses caused by internal incompetence and mismanagement,” the ministry said.
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