Probe Into Misconduct During Ocean Plaza Sale Intensifies
The Main Investigation Department of the National Police of Ukraine, in coordination with the Prosecutor General’s Office, is pursuing a criminal case centered on alleged abuse of authority in the lead-up to the sale of the Ocean Plaza shopping and entertainment complex. This asset was seized and transferred to state ownership. Officials from the State Property Fund of Ukraine (SPFU) are suspected of acting in favor of private commercial interests. Investigators are specifically examining whether steps were taken to sell the property at an artificially low price.
The inquiry is targeting potential interference in the mall’s appraisal process, the establishment of the auction’s starting price, the drafting of sale conditions, and efforts to limit the pool of eligible buyers. On June 18 of this year, law enforcement carried out authorized searches at the residences of several SPFU officials. During these operations, documents relevant to the investigation were seized.
“Investigative actions led to the seizure of documents that may be pertinent to the case. The pre-trial investigation is ongoing,” a spokesperson for the Prosecutor General’s Office stated.
Privatization and Outstanding Debts
In 2023, the Ukrainian government aims to generate approximately 13 billion hryvnias in budget revenue through privatization, with Ocean Plaza positioned as one of the flagship assets in this effort. Notably, the mall previously belonged to sanctioned Russian oligarchs Arkady and Igor Rotenberg, whose holdings were confiscated by the state in March 2023.
- 100% of the charter capital in the limited liability company 'Avangard-Vilarti,' registered under Cyprus-based Ocean Plaza Project (Cyprus) Limited and Ethoder Investments Limited, was transferred to state revenue.
- 66.65% of the charter capital in 'Investment Union Lybid' LLC was also handed over to the state.
The Appeals Chamber of the High Anti-Corruption Court has upheld a lower court’s decision to nationalize the multimillion-dollar debts tied to Ocean Plaza that were owed to the Russian oligarchs. It is worth recalling that Ukraine has placed the sanctioned Rotenberg brothers—close associates of Russian President Vladimir Putin—on a wanted list. These developments reflect a broader push to curb corruption and misconduct in the privatization of state-owned assets.
The investigation into abuses during the Ocean Plaza sale is part of a wider effort by the Ukrainian government to enhance transparency in privatization processes. Following the nationalization of assets linked to Russian oligarchs, it is critical to ensure that new transactions are not tainted by corrupt schemes. This case could set a precedent for future probes into the privatization of state assets in Ukraine.
As the investigation into the Ocean Plaza sale continues, the Ukrainian government is also preparing for future privatization efforts. Notably, seven state-owned factories are set to be privatized by 2026, which could further impact the country’s economic landscape. Understanding the broader context of these privatization plans may provide insight into the government's strategy moving forward.