The former owner of "Zhytomyr Treats" lost the arbitration case against Ukraine.

The Permanent Court of Arbitration in The Hague, Netherlands, has dismissed the lawsuit filed by US and Russian citizen, businessman Igor Boyko. The former shareholder of "Zhytomyr Treats" initiated arbitration against Ukraine in early 2017 based on an intergovernmental agreement with the Russian Federation regarding the encouragement and mutual protection of investments. 

This was reported by the press service of the Ministry of Justice. 

“The claimant sought damages amounting to 100 million US dollars, arguing that this was due to the expropriation of his share in the corporate rights of a legal entity engaged in the confectionery business,” the statement said. Boyko failed to prove either the legality of acquiring the investments or the fact that Ukraine violated the Agreement.

During the proceedings, the businessman repeatedly made statements in the media that undermined Ukraine’s status, with a clear intention to gain support in the case, as well as in his interpretation of events, the Ministry noted.

Boyko was the owner of the Zhytomyr Confectionery Factory "ZHL," which was removed from the Unified State Register in 2016. In its place, the liquidated JSC "Zhytomyr Treats," which had been dissolved in 2010, was reinstated, transferring assets to the balance of the LLC "ZHL."

In 2017, Boyko claimed that the factory was seized by raiders organized by Serhiy Pashynskyi, Serhiy Tyshchenko, Pavlo Petrenko, and Arsen Avakov, with the active participation of then-President Petro Poroshenko. Later, Boyko himself was arrested on suspicion of raiding the same factory in 2010. In 2018, the court refused to extend the businessman’s detention.

Currently, the ultimate beneficiary of the joint-stock company "Zhytomyr Treats" is Motrona Tyshchenko – the mother of businessman Serhiy Tyshchenko. He, along with Pashynskyi, is suspected of embezzling over 97,000 tons of oil products from the SEPEK group of Serhiy Kurchenko. The money was funneled through Fortuna Bank, which de jure also belonged to Tyshchenko’s mother. 

In connection with the case, in February of this year, the High Anti-Corruption Court chose a preventive measure for the businessman – detention.