On September 17, 2026, the Supreme Court of Ukraine concluded the cassation proceedings in one of the notable disputes in the banking sector: the court dismissed the cassation appeal of Euroenergotrade LLC and left the appellate court's decision unchanged. As reported by RBC-Ukraine, citing an official statement by UGB (Ukrgasbank) on Facebook, the decision has entered into legal force and is not subject to further appeal. In effect, this means that the years-long legal saga surrounding a debt of over 1 billion UAH has reached its final legal conclusion.
Outcome of the cassation proceedings
The key issue in the cassation was the lawfulness of the transfer of the creditor's right of claim to the guarantor after the full repayment of the debt. The Supreme Court confirmed that, in the event of full repayment of a debt secured by a guarantor's pledge, the creditor's rights pass to the guarantor by operation of law — through the mechanism of subrogation. At the same time, the terms of the obligation for the debtor do not change: only the creditor changes. Thus, the court established the legal consequences of applying subrogation, which, according to the bank's own assessment, becomes a practical benchmark for the entire banking sector when dealing with problem assets.
Timeline of the debt: from a 2020 loan to preventive restructuring
The dispute began in 2020, when the state-owned Ukrgasbank extended a loan of over 1.2 billion UAH to Euroenergotrade LLC, secured by a pledge of accounts receivable for gas supply — at that time the company was actively operating in the energy market. In late 2023, the debtor stopped servicing its obligations, and the debt grew to nearly 1.35 billion UAH. After prolonged court proceedings, the parties signed a settlement agreement, but Euroenergotrade again breached the payment schedule. As a result, on January 29, 2026, the Donetsk Regional Commercial Court opened preventive restructuring proceedings against the company, after the court had previously refused to approve the restructuring plan.
The subrogation mechanism: how the guarantor repaid the debt
The turning point came in May 2026, when UGB's debt was effectively repaid: the funds were paid by Park Lane LLC, which had acted as the guarantor for Euroenergotrade's obligations. After full repayment, the creditor's right of claim passed to Park Lane through the mechanism of subrogation, and it was precisely the lawfulness of such a transfer that became the subject of subsequent litigation, culminating in the Supreme Court's decision of September 17, 2026. According to UGB, as a result of the subrogation agreement, over 550 million UAH in taxes was remitted to the state budget, making the mechanism beneficial not only for the bank but for the state as a whole.
Financial outcomes and the parties' positions
Oleksandr Rogachev, Director of the Department for the Resolution of Non-Performing Assets at UGB, named the key outcome as the return of over 1 billion UAH of non-performing debt to the state bank and emphasized that the Supreme Court's decision confirmed the legal consequences of the mechanism applied. The beneficial owner of Park Lane LLC, Israeli businessman and investor Ofer Kertner, stated that he has been investing in Ukrainian business projects for 30 years and continues to do so during the war, including in reconstruction projects. In his words, the Supreme Court's decision is a 'very positive signal' that allows for planning future projects in Ukraine, and the company intends to continue protecting its lawful rights, using all debt-collection mechanisms provided by law against debtors.
