Russia’s full-scale invasion has transformed the approach to the state’s economic security. Today, defending Ukraine is not only about military strength, but also about the state’s ability to deprive the aggressor and sanctioned persons of economic resources that may be used to finance the war, support influence networks and destabilise the country.

For this reason, the management of seized assets has become an important element of the state’s national security policy. Assets linked to the aggressor state, sanctioned persons, corruption offences or organised crime should not remain passive property, but rather serve as a resource that works in the interests of the state and society.

The Law on ARMA Reform, which entered into force one year ago, on 30 July 2025, launched systemic changes in the field of seized asset management. Its objective was to establish a modern operating model for the Agency based on the principles of the rule of law, transparency, open competition and accountability.

The first year of ARMA’s reform has been a period of building this system. During this time:

• an inventory of seized assets has been carried out;
• the regulatory framework required to implement the new mechanisms has been prepared;
• open competitions for the selection of asset managers have been launched;
• an independent international audit of the Agency’s activities has commenced;
• new digital tools and oversight procedures have been introduced.

At the same time, the new mechanisms have already begun to be applied in practice. ARMA has, for the first time, taken seized virtual assets into management — more than 8.3 million USDT, is carrying out the procedure for the sale of the Royal Romance yacht and is conducting a competitive selection process for the manager of the corporate rights of IDS Ukraine.

These cases demonstrate that the newly established instruments are already functioning in real-life conditions. At the same time, a comprehensive assessment of the reform’s effectiveness, based on quantitative and qualitative indicators, will only be possible once the implementation phase has been completed and the new management model is fully operational.

Today, ARMA ensures the entire cycle of work with seized assets — from their tracing and identification to their management or sale, maintains the Unified State Register of Seized Assets, develops international cooperation and introduces modern digital solutions to enhance transparency and accountability.

The first year of the reform has been a year of establishing the institutional foundations. These foundations will make it possible to achieve measurable results: effective asset management, preservation of the economic value of assets, transparent procedures and increased revenues for the state.

The management of seized assets is an integral component of the state’s economic security. Depriving the aggressor, sanctioned persons, corrupt actors and organised criminal groups of the ability to use their assets for unlawful purposes is not only a matter of justice, but also an essential element of Ukraine’s resilience during wartime.