Arzinger welcomes the decision of the HACC. The court upheld the legal position developed by Arzinger, taking into account the provisions of Ukrainian and Dutch law, and considered the extensive evidence collected in several jurisdictions (the Netherlands, the United Kingdom, Ukraine).
The court acknowledged that as of the date of the case, Shell indirectly owns 97,44% of the corporate rights of Alliance Holding LLC, and that formal satisfaction of the claim would violate Shell's rights as a foreign investor.
Having assessed the international legal aspects of the case, the Court also noted that the recovery of the assets of Alliance Holding LLC would lead to further disputes in international courts, which Shell is likely to win, and to significant additional costs for the state budget.
Finally, the Court emphasised that under martial law, the state of Ukraine should be particularly attentive to possible violations of property rights, as this is directly related to investments in the economy, which in the current realities are extremely important for strengthening the economic capacity to protect the territorial integrity of Ukraine.
Arzinger attorneys - Kateryna Gupalo, Oleksander Dyakulych, Volodymyr Nakonechnyi, Nikita Larionov – represented the interests of Shell. Associates - Anastasia Kotliarchuk, Tetyana Bihun, Dmytro Chyzhevskyi, Mykhailo Lazoryshynets, Olena Nasienkova – provided the substantial support. The team was led by founding partner and managing partner Timur Bondaryev.
The full text of the HACC decision is available at the link: 991_8725_23_23-01-2024.pdf (court.gov.ua).
We hope that the Appeal Chamber will uphold the ruling of High Anti-Corruption Court.
For reference: Alliance Holding LLC is the operator of a nationwide network of petrol stations operating under the Shell brand and comprising about 131 petrol stations in Ukraine (117 functioning as of today). To date, Shell employs around 1,600 people in Ukraine. In an effort to meet the expectations of a growing number of Ukrainian electric vehicle owners, more than 14% of Shell’s network have electric vehicle charging modules installed. Shell Group is the majority owner of 97,44% of Alliance Holding LLC. Since the beginning of the full-scale war in Ukraine, the Shell Group has been focused on actively supporting Ukraine and Ukrainian refugees. To date the total amount of Shell's donations to Ukraine was USD 74 million. Shell Group also donated almost USD 11 million to several humanitarian organisations helping Ukrainians.
Shell is a global group of energy and petrochemical companies with 93,000 employees in more than 70 countries. Renowned for over 100 years of experience in fuel development, Shell uses advanced technologies and innovation to help build a sustainable energy future. Shell also invests in power, including from low-carbon sources such as wind and solar; and new fuel for transport, such as advanced biofuels and hydrogen.