On 28 November, the Asset Recovery and Management Agency announced a competition on Prozorro for the management of IDS Ukraine group assets. This asset has attracted the attention of the market, so ARMA is providing clarification on the legal mechanisms and principles of the competitive selection of the manager.

1.Are there any court decisions under which the court transfers the assets of the IDS Ukraine group to ARMA for management?

Yes. The assets were transferred to management solely pursuant to the rulings of the Shevchenkivskyi District Court of Kyiv, adopted within the framework of criminal proceedings, in particular rulings dated 9-11 November 2022 and 6 March 2023. The enforcement of such court decisions is the responsibility of state authorities.

ARMA manages assets exclusively within the limits and pursuant to the court rulings.

2.What does ARMA's management of assets mean?

The management of seized assets is a temporary legal mechanism that applies until a final court decision is made.

ARMA:

- does not change the form of ownership of the asset

- does not carry out confiscation

- does not interfere in the operational activities of the business

The purpose of management is to preserve the economic value of the asset, ensure continuous operation and prevent downtime.

3.Does the owner of the assets or the rights of co-owners change?

No. Transfer of assets to management:

- does not change the ownership structure

- does not deprive co-owners or minority shareholders of their shares

- does not restrict the exercise of non-seized corporate rights within the limits of the law

Issues of ownership and corporate rights are not resolved by ARMA, but in accordance with the procedure established by Ukrainian law, in particular, by a court decision. The rights of minority owners are protected.

4.Why is the selection of an administrator being announced now, rather than after the completion of the sanctions process?

ARMA is obliged to immediately ensure the management of assets after receiving court decisions in the manner and within the time limits specified by law, regardless of whether the sanctions procedure is ongoing or whether confiscation decisions are possible. The involvement of an administrator is necessary in order to:

- preserve the economic value of the asset

- ensure the continuation of economic activity

- protect jobs

- minimise the risks of degradation or loss of the asset

In the event of a change in the status of the assets, ARMA will act pursuant to the new court rulings.

5.Does ARMA have a complete set of documents regarding the assets?

The assets have been valued for those objects that required it pursuant to the court rulings of 11 November 2022. With regard to other assets, ARMA has announced market consultations (the procedure for engaging appraisers), which is in accordance with the law. A description of the assets is available. The collection of documents is ongoing in accordance with the established procedure, depending on the type of assets and the requirements of the law.

The clarification of certain documents does not restrict the participation of candidates in the application collection procedure and does not create advantages for any of the participants.

6.Is this asset considered complex and how does this affect the selection procedure?

Yes. Corporate rights, shares and stocks are classified as complex assets in accordance with the law. However, a special competition under the new procedure (Article 21-4 of the Law of Ukraine “On ARMA”) will only come into effect on 1 February 2026. Until then, tenders are held in accordance with the rules of public procurement in the Prozorro system, which fully complies with current legislation.

There are no grounds in the legislation for postponing the announcement of the tender, so as soon as the entire list of documents for the asset is ready, ARMA announces the tender.

7.How is the manager selected?

The selection of the manager is carried out through an open procedure using the Prozorro electronic system. The procedure includes:

- publication of the conditions and requirements before the start of the selection process

- equal conditions of participation for all candidates

- a question and answer period

- evaluation of applications according to specified criteria

- publication of the results

8.Is this procedure transparent and verified?

Yes. The use of an electronic selection system ensures: publicity of the key stages of the procedure, equal access to information, recording of conditions and decisions in a digital environment.

This minimises the risks of informal agreements or individual conditions.

9.Who can participate in the selection of the manager?

Market operators and management companies are invited to participate.

These must be business entities with:

- operational management experience

- financial capacity

- an appropriate business and reputation history

- no conflict of interest

10.What powers does the asset manager have?

The manager acts exclusively within the framework of the agreement with ARMA and does not have the right to:

- sell the asset

- change the ownership structure

- terminate business activities without legal grounds

The main function of the manager is to ensure the stable and effective operation of the asset under ARMA's control.

11.Can the decision to transfer assets to management be appealed?

Yes. Persons who believe that their rights have been violated may use the procedural mechanisms provided by law, in particular, appeal to the court. ARMA does not influence these processes and does not make decisions instead of the court.

12.Why should businesses trust the administrator selection procedure?

Trust in the procedure is based not on statements, but on specific rules and mechanisms that can be verified. The administrator selection procedure:

-        is conducted openly and publicly

-        has the same conditions for all participants

-        is based on clear and predefined criteria

-        is conducted through an electronic system where all stages are recorded

-        provides for the publication of results and the possibility of their verification

ARMA does not make informal decisions and does not interfere in the economic activities of businesses. ARMA's role is to ensure the enforcement of court decisions, transparent selection rules and control over their compliance. It is the verification of each stage, rather than subjective agreements, that is the basis for business participation in the procedure.

For reference

The court decisions on the basis of which the assets are transferred to ARMA's management are made by investigating judges within the framework of criminal proceedings and are available for review in the Unified State Register of Court Decisions of Ukraine.