UGB recovers UAH 1.14 billion in problematic debt from Euroenergotrade via subrogation: over UAH 550 million goes to the state budget

The state-owned bank UGB (Ukrngazbank) has announced the completion of one of the most significant settlements in its non-performing asset portfolio: the bank managed to recover over UAH 1.14 billion in problematic debt of Euroenergotrade LLC. This is reported by RBC-Ukraine, citing a publication by Interfax-Ukraine news agency. According to the financial institution, the deal was structured using the subrogation mechanism — after the obligation was fulfilled by the property guarantor, i.e. the pledgor, the corresponding creditor rights transferred to it. The pledgor on the loan that settled the debt was a company under the beneficial control of Israeli businessman Ofer Kuzner.

Subrogation mechanism and Ofer Kuzner's position

According to Kuzner, the debt to the bank was refinanced with zero discount: UAH 1.14 billion was paid in exchange for obtaining the creditor's rights. "As an investor and businessman who has been conducting business activities in many countries, including Ukraine, for many years, I have always been guided by good faith and trust in partners. I took the risk of becoming a guarantor on the loan, trusting one of such partners. But, unfortunately, he misled me. However, I always stand by my word — that is my understanding of doing business," Kuzner commented on the agreement. He also emphasized that he is pleased with the subrogation mechanism provided for by Ukrainian legislation, which, in his words, helps the state bank and the state as a whole to strengthen financial stability, especially in wartime conditions, and added that the actions of certain individuals remain the subject of a criminal investigation.

Impact on the budget and the state

Importantly, the result of such a settlement is obtained not only by the bank but also by the state. According to UGB, as a result of the agreement, over UAH 550 million in taxes was remitted to the state budget. The bank emphasized that a problematic asset should not remain "just a number on the balance sheet" for years, and the financial institution's task is to use all the tools provided by law to recover funds. "For a state bank, this is especially important: the recovered resource can work for the economy again, and the financial result obtained can generate additional revenue for the budget," noted Alexander Rogachev, Director of the Department of Economic Settlement of Non-Performing Assets at UGB.

Systemic work with problematic assets

UGB noted that the Euroenergotrade case is only part of the bank's broader systemic work with problematic loans. Among other significant results, the financial institution cited the normalization of the loan to Yughtransterminal LLC with a debt of USD 35 million and the restructuring of the debt of Nibulon LLC with a debt of USD 45 million. Thus, the bank demonstrates a consistent practice of transferring non-performing assets into the active servicing and recovery phase.

Financial performance and network expansion

Against the backdrop of settling problematic assets, UGB reported strong financial results: as of the end of Q2 2026, the bank's pre-tax profit was almost UAH 2 billion, and its own capital as of the end of the first half of 2026 reached UAH 21.71 billion. In parallel, the bank continues to expand its customer infrastructure: as previously reported, in June 2026 UGB opened its first underground branch in Kharkiv at the Universytet metro station, which became a new format of banking space in the city.