Ukraine has won a legal dispute against businessman Igor Boyko, a citizen of the USA and Russia, who approached the International Arbitration Court in The Hague in 2017, accusing the state of expropriating his business, reported the press service of the Ministry of Justice.
"As a result of the case review, the claims, totaling $100 million, were completely denied," the statement said.
The Ministry reminded that Boyko sought compensation for damages related to the expropriation of his share of corporate rights in a legal entity engaged in the confectionery business (the Zhytomyr confectionery factory "Zhytomyrski Lasychi" – IF-U). His interests were represented by international advisors with the support of a legal financing fund.
"During the proceedings, which began back in 2017, the plaintiff repeatedly made statements in the media that undermined Ukraine's status, with the obvious intention of garnering support for his case, as well as in his interpretation of events," the Ministry of Justice reported.
According to the Ministry's information, the arbitration tribunal found that the plaintiff failed to prove both the legality of the investment acquisition and the fact of Ukraine's violation of the agreement.
The confectionery factory in Zhytomyr was established in 1944. Before the full-scale invasion by Russia, it ranked among the top three market leaders, holding first place in product exports to 36 countries. Its total production capacity was 80,000 tons of products per year.
The conflict between the parties – the owner of the JSC "Zhytomyrski Lasychi" Yuri Leshchynskyi and the owner of the Limited Liability Company (LLC) "Zhytomyr Confectionery Factory" Boyko – over the ownership rights to the factory intensified in 2015 when the shareholders of "Zhytomyrski Lasychi" stated they were unable to access it.
At the same time, the LLC accused MP Serhiy Pashynskyi and his partner Serhiy Tyshchenko of supposedly staging a raider takeover. Later, Pashynskyi expressed support for Leshchynskyi, stating that he considered his Swiss Delta Capital a legitimate shareholder of "Zhytomyrski Lasychi".
In early 2017, Boyko filed a lawsuit against the state of Ukraine in the International Arbitration Court in The Hague for compensation of losses due to the expropriation of his business.
Earlier, the director of the National Anti-Corruption Bureau of Ukraine, Artem Sytnyk, reported that the value of the factory is estimated at 2 billion UAH.
Currently, control over the factory is held by the owners of JSC "Zhytomyrski Lasychi".
According to OpenDataBot, "Zhytomyrski Lasychi" generated a revenue of 474.383 million UAH in 2023, with a net profit of 15.8 million UAH. The workforce of the enterprise remained stable at 693 people, which is just 10 employees fewer than in the pre-war year of 2021.