The National Agency of Ukraine for Finding, Tracing and Management of Assets (ARMA) has selected the winner of the open competition for managing seized property formerly owned by a general of the Russian Armed Forces, Valeriy Kapashin.

The competition was conducted in accordance with the requirements of Ukrainian legislation and through the Prozorro electronic procurement system. The selected manager is LLC “VOYEDZHER PLYUS”. The assets include real estate located in Poltava at the following addresses:

• 62 Zhovtneva Street
• 2 Frunze Street
• 5a Vyacheslav Chornovil Street (formerly Kuibysheva Street)
• 36 Komsomolska Street
• 12 Gogolya Street
• 21 Frunze Street

At the same time, ARMA anticipates further appeals against the competition results from LLC “ZAV POLTAVA” — a company that the Antimonopoly Committee of Ukraine has recognised as being indirectly linked to the asset’s owner, russian general Valeriy Kapashin.

Despite the established fact that LLC “ZAV POLTAVA” was not entitled to participate in the competition at all, Ukrainian antitrust legislation does not limit such an entity’s right to file complaints with the AMCU. These appeals prolong the selection process for an asset manager and, as a result, delay the State Budget of Ukraine from receiving revenues from managing these assets.

It is important to note that since the entry into force of the Law on ARMA Reform, work has begun on developing the regulatory framework for the establishment of an interagency commission. The commission will include representatives of ARMA, the Business Ombudsman, the National Securities and Stock Market Commission, the Ministry of Economy of Ukraine, and the Ministry of Justice of Ukraine.

This commission will assess applicants for managing complex assets for compliance with qualification requirements and will make a decision on such compliance, which can be appealed only in court. Under this new procedure, unlike the previous system for selecting asset managers, the process of transferring an asset into management will not be delayed or halted due to waiting for decisions from other state bodies.