ARMA announced a competition for the management of IDS Ukraine assets: how the selection process works

On November 28, ARMA - the Asset Recovery and Management Agency announced a competition on Prozorro for the asset manager of the IDS Ukraine group. ARMA provides clarifications regarding the legal mechanisms and principles for conducting the competitive selection of the manager.

• Are there court decisions in which the court transfers the arrested assets of the IDS Ukraine group to the management of ARMA?

Yes. The arrested assets are transferred for management solely on the basis of rulings by investigating judges of the Shevchenkivskyi District Court of Kyiv, as issued within the framework of criminal proceedings, including rulings from November 9-11, 2022, and March 6, 2023.

• What does the management of the arrested asset by ARMA mean?

The management of the arrested asset is a temporary legal mechanism that is applied until a final court decision is made. ARMA does not change the ownership of the asset, does not carry out confiscation, and does not interfere with the operational activities of the business.

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

No. The transfer of arrested assets for management does not change the ownership structure, does not deprive co-owners of their shares, and does not limit the realization of non-arrested corporate rights.

• Why is the selection of a manager announced right now, instead of after the sanctions processes are completed?

ARMA is obliged to ensure the management of assets immediately after receiving court decisions, regardless of whether the sanctions procedure is ongoing or there will be possible confiscation decisions.

• Does ARMA have a complete package of documents regarding the arrested assets?

The evaluation of the arrested assets was conducted for those objects that required it in accordance with the court rulings from November 11, 2022. Regarding other assets, ARMA announced market consultations (a procedure for engaging evaluators), which complies with the law.

• Is this arrested asset considered complex and how does it affect the selection procedure?

Yes. Corporate rights, shares, and stocks, according to legislation, belong to the category of complex arrested assets.

The competition for the management of the arrested assets of the IDS Ukraine group has been announced by ARMA, which is obliged to ensure the management of assets immediately after receiving court decisions. This procedure does not change the ownership of the assets, but only temporarily manages them until a final court decision is rendered.