On February 5, 2025, the Eastern Commercial Court of Appeal ruled in favor of PJSC Alchevsk By-Product Coke Plant, ordering the Russian Federation to pay over UAH 927.5 million in damages for the destruction of the company’s critical documentation. The decision follows the previous judgment of the Commercial Court of Luhansk Region, which dismissed the claim.
The Alchevsk By-Product Coke Plant is one of Ukraine’s largest enterprises, producing coke for industrial use. Following the occupation of Alchevsk in 2014, the plant ceased operations, and key financial records – crucial for substantiating its claims, including those against PJSC Dneprovsky iron & steel integrated works – were destroyed. This loss made it impossible to recover debts from counterparties, resulting in significant financial damage.
In 2021, the Commercial Court of Luhansk Region declared PJSC Alchevsk By-Product Coke Plant insolvent and initiated liquidation. In July 2024, Oleksandr Kamsha, Insolvency Receiver, Head of the Dnipro Office of Ilyashev & Partners Law Firm, was appointed liquidator of the enterprise.
“This court judgment marks another step in the fight for damage recovery suffered by Ukrainian enterprises due to the war,” said Oleksandr Kamsha. “We have successfully proven in court that the destruction of documents as a result of military aggression directly deprived the company of its ability to defend its interests. This is yet another step toward international justice and full recovery for Ukraine's damage."
The next planned steps in recognizing and enforcing this decision to recover damages will involve tracing Russian assets located in foreign jurisdictions. In addition, they will resolve the issue of seizing these assets to collect the debt. While this is a long-term process, these efforts are expected to yield a positive outcome for PJSC Alchevsk By-Product Coke Plant and facilitate Russia's damages recovery. The funds obtained will be directed toward settling claims by the company’s creditors within the bankruptcy proceedings.
This was the second court decision to recover from the Russian Federation damages caused to PJSC Alchevsk By-Product Coke Plant. Through the efforts of Ilyashev & Partners Law Firm, on February 12, 2024, the Commercial Court of the Luhansk Region ordered to recover from the Russian Federation over USD 292 million of damages caused to one of the largest coke and chemical enterprises in Ukraine as a result of Russian aggression.