ARMA canceled the auction for the lands of the Borzhava resort after a scandal involving connections with Levochekin's entourage

The Asset Recovery and Management Agency refused to sign the results of the auction for the arrested lands in Transcarpathia, where the Borzhava resort was planned. The decision was made after checking information about the possible connection of the auction winners with former owners of the assets. This was reported by MP Yaroslav Zheleznyak.

We are talking about over 460 hectares of land in the area of the future Borzhava resort, which ARMA put up for sale in three large lots through the Prozorro system. The sale caused a wide resonance after journalists' investigations and the public reaction of members of parliament.

Cancellation of ARMA's auctions for Borzhava lands

According to MP Yaroslav Zheleznyak, the agency recognized the presence of signs of connection of the winning companies with influential groups, including those close to Sergey Levochekin. Such connections, according to international asset management standards, create a risk of actual return of the property to the control of previous owners.

As a result, ARMA announced that it would not sign purchase and sale contracts, and the auctions themselves are effectively deemed to have not taken place.

What were the key reasons for the cancellation:

• detection of signs of connection between buyers and former owners of the assets;

• risk of re-appropriation of the arrested lands;

• public resonance and publicity around the sale.

Lands of the Borzhava resort and Vladislav Kaskiv's role

The history of these plots dates back to the time of Viktor Yanukovych's rule. As Zheleznyak reminds, the former head of the State Investment Project and currently a deputy of the Transcarpathian Regional Council, Vladislav Kaskiv was connected with the project to create a large-scale ski resort in Borzhava.

Within the framework of criminal proceedings, the state acquired hundreds of plots of land with a total area of over 460 hectares, which were transferred to ARMA for implementation with the aim of replenishing the budget. At the same time, under the terms of previously concluded procedural agreements, if the assets are not realized within the established time, there is a risk of legal claims for their return.

Zheleznyak emphasizes that simply re-auctioning the lands of Borzhava without changing the approach could lead again to a similar scandal.

Let us remind that ARMA has launched an updated asset control system.