Ukraine wins arbitration case against former Zhytomyrski Lasoschi owner, Russian businessman Boyko
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Ukraine has won an arbitration case against businessman Igor Boyko, a dual citizen of the United States and Russia, who filed a $100 million lawsuit in 2017, accusing Ukraine of expropriating his business, according to the Ministry of Justice.
"The tribunal rejected the claimant's demands, amounting to $100 million, in full," the Ministry reported.
Boyko had sought compensation for the alleged expropriation of his corporate rights in a confectionery company operating under Zhytomyrski Lasoschi. His case was represented by international advisors supported by a legal financing fund.
"The case, initiated in 2017, saw the claimant repeatedly making public statements aimed at discrediting Ukraine, likely to garner sympathy for his case and influence interpretations of the events," the Ministry said.
The tribunal ruled that Boyko failed to prove both the legality of acquiring his investments and any breach by Ukraine of international agreements.
The Zhytomyr confectionery factory, established in 1944, was one of Ukraine's top confectionery exporters before Russia's full-scale invasion, supplying products to 36 countries with a total production capacity of 80,000 tons annually.
The conflict between Boyko, the owner of double liability company Zhytomyr Confectionery Factory, and Yuriy Leschynsky, the owner of JSC Zhytomyrski Lasoschi, escalated in 2015. Leschynsky's shareholders alleged they were barred from the factory, while Boyko's group accused Ukrainian MP Serhiy Pashynsky of orchestrating a corporate raid. Pashynsky supported Leschynsky, asserting that Swiss-based Delta Capital was the legitimate shareholder of Zhytomyrski Lasoschi.
In 2017, Boyko filed the arbitration claim in The Hague, seeking damages for what he alleged was the expropriation of his business.
The estimated value of the factory was reported at UAH 2 billion by Artem Sytnyk, the then-director of Ukraine's National Anti-Corruption Bureau.
Today, the factory is controlled by JSC Zhytomyrski Lasoschi, which recorded revenue of UAH 474.4 million in 2023, with net profits of UAH 15.8 million. The workforce has remained largely stable, employing 693 people, just 10 fewer than in 2021.