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losses due to the annexation of Crimea by Russia in 2014 at more than $9bn.
The Permanent Court of Arbitration in The Hague has agreed to hear Russia's arguments concerning the unlawful acquisition by PrivatBank of assets in Crimea​, according to the Russian Justice Ministry. Last week, PrivatBank said that the arbitration ​has rejected Russia's claim​ to reconsider its findings on jurisdiction and liability as set out in its previous awards regarding hearings of a lawsuit filed by Ukraine's state-owned lender. "The panel allowed the submission of evidence that the bank, while under the control of Ukrainian oligarch Ihor Kolomoisky, was the unlawful owner of assets, which the plaintiff claims were expropriated," according to the ministry’s statement, Russian news agency Interfax reported on September 17. The Russian ministry said PrivatBank, and those who controlled it,d concealed information about repeated infringements of the law with the aim of obtaining the assets, including information about actions of a corrupt nature. "After the Russian Federation reported this [information], the tribunal confirmed it would hear the parties in the case simultaneously with the state's objections regarding the extent of the bank's losses," the statement reads. In February, PrivatBank ​secured a partial award​ in its favour in the Permanent Court of Arbitration at the Hague, where the lender is challenging Russia's expropriation of the bank's investments in Ukraine's Crimea. Specifically, the arbitral tribunal found that it has jurisdiction over all of PrivatBank’s claims against Russia, that Moscow breached its obligations under the Ukraine-Russia bi-lateral investment treaty by unlawfully expropriating PrivatBank’s investments in Crimea, and that PrivatBank is entitled to full compensation for that expropriation, the bank said in a statement e-mailed to bne IntelliNews o​ n February 15. The arbitral tribunal reserved for the next phase of the arbitration the question of how much compensation is due to PrivatBank for Russia's "unlawful actions". PrivatBank seeks compensation in excess of $1bn. Last week, PrivatBank said that the Permanent Court of Arbitration in Hague has rejected Russia's claim to reconsider its findings on jurisdiction and liability as set out in its previous awards regarding hearings of a lawsuit filed by the lender.
8.2 ​Central Bank policy rate
Ukraine central bank lowers key policy rate to 16.5%​. ​The National Bank of Ukraine (NBU) announced on September 5 that it decided to lower its key policy rate by 0.5pp to 16.5% at its monetary policy board meeting that day. The decision extends its monetary softening cycle resumed in July – when it also ​lowered the rate by 0.5pp​ – with the expectation that consumer inflation will cool to a target of 5% y/y by end-2020.
The NBU noted that ​July’s inflation of 9.1% y/y​ was above NBU projections. Meanwhile, core inflation of 7.4% y/y in July corresponded to the NBU’s forecast. Hard monetary policy was a significant factor that restrained fundamental inflationary pressure. At the same time, enlarged domestic demand, alongside ​fast growth of wages​, impeded inflation from faster cooling.
Macroeconomic factors haven’t changed the balance of risks for the forecast since the previous revision of the key policy rate in July, according to the central bank. On the one hand, recent appreciation of the national currency will foster an inflation slowdown in the nearest months. On the other hand, swelling
49​ UKRAINE Country Report​ October 2019 ​ ​www.intellinews.com