On 30 January, certain provisions of the Law on the Reform of ARMA entered into force. One of the key changes is the division of seized assets into “simple” and “complex” categories, with different mechanisms for selecting asset managers. Below, we explain what this means in practice.
Previously, ARMA applied the same competitive procedure to manage all types of assets-from apartments and vehicles to large enterprises or corporate rights. In effect, assets that differed significantly in nature and complexity were subject to uniform rules. This led to delays in selection procedures, requirements that did not correspond to the actual needs of asset management, and the loss of economic value. The new law establishes a legal framework to address this issue through differentiation.
“Simple” assets include cash and individual movable or immovable property, such as apartments, non-residential premises, vehicles, land plots, and similar assets. Managers for such assets will be selected through the electronic public procurement system based on a single criterion-the lowest remuneration. Remuneration is defined as a share of the income generated from managing the asset and paid to the manager. The lower the remuneration, the more funds remain for the state. Eligible managers are business entities with experience in property management that are not affiliated with the asset owner or the aggressor state.
“Complex” assets include integrated property complexes, assets or pools of assets that require the organization of economic activity, shares in authorized (charter) capital and stocks, as well as assets with a value exceeding 20,000 subsistence minimums. These assets require individualized management strategies, business plans, and enhanced qualification requirements for managers. The objective is to ensure that each asset is managed professionally and responsibly.
The selection will be carried out by a competitive commission composed of representatives of ARMA, as well as representatives of the Business Ombudsman, the Ministry of Economy, the Ministry of Justice, and the National Securities and Stock Market Commission.
Decisions will be adopted by a majority vote, with the mandatory support of external members of the commission. This mechanism is intended to prevent the concentration of influence and behind-the-scenes decision-making.
For each asset, ARMA will prepare an indicative management plan - a document describing the asset, providing a financial forecast, risk analysis, and recommendations. This will help potential managers better assess the asset and promote more balanced and informed decisions.
The new rules will require a transition period and adaptation by both ARMA and market participants. In the near term, the Agency will focus on ensuring the correct and consistent implementation of the new procedures.
