Supreme Court confirms legality of forced alienation of Ukrtatnafta shares in favor of the state

The Supreme Court has confirmed the legality of the state's actions regarding the forced alienation of shares of PJSC Ukrtatnafta under martial law, the Ministry of Justice reported on Monday.

"On June 5, 2025 the Court dismissed the cassation appeal of Relix Services Ltd. The decisions of the courts of first and appellate instances to refuse to satisfy the claim were left unchanged," the department noted.

As the Ministry of Justice informed, the Supreme Court confirmed that the forced alienation of shares of Ukrtatnafta took place on legal grounds - in accordance with the decision of the military command dated November 6, 2022 and the provisions of the law "On the transfer, forced alienation or seizure of property under the legal regime of martial law or a state of emergency."

"This case is one of many in which companies associated with former owners of corporate rights of strategically important enterprises are challenging the state's actions to alienate shares," the ministry emphasized.

The Ministry of Justice explained that litigation in this category covers several types of claims: requisition of shares, challenging decisions of the military command, as well as changes in the management and constituent documents of companies.

As of June 2025, 13 cases are pending in the courts of Ukraine, in which the Cabinet of Ministers of Ukraine (the procedural representative of the Ministry of Justice) is a participant, and two more cases in which the state represented by the Ministry of Justice is the defendant. In all of these cases, decisions were made to refuse to satisfy the claim. In addition, the Supreme Court issued final court decisions in 14 court cases.

The Ministry of Justice emphasized that the formation of the Supreme Court's case law in cases regarding the forced alienation of corporate rights in favor of the state under martial law confirms the legality, justification and legality of decisions made by the state in the interests of national security.

According to the ministry, the forced alienation of corporate rights of PJSC Ukrnafta and PJSC Ukrtatnafta became a necessary step to ensure defense capability, stability of the fuel market and safety of citizens in conditions of full-scale war.

"The Ministry of Justice continues to consistently protect the interests of the state in relevant legal proceedings and emphasizes the need to harmonize law enforcement with the challenges of national security in conditions of war," the department emphasized.

On November 5, 2022, the Headquarters of the Supreme Commander-in-Chief of the Armed Forces of Ukraine adopted a decision to transfer a share of corporate rights of Ukrtatnafta belonging to private owners to the state. Currently, they are managed by the Ministry of Defense of Ukraine. The remaining 43.05% of the company's shares belong to NJSC Naftogaz of Ukraine.