Court ruling on IDS Ukraine asset management tender does not establish violations by Asset Recovery Agency – statement

Ukraine's Asset Recovery and Management Agency (ARMA) emphasizes that the decision of the High Anti-Corruption Court (HACC) regarding the tender to select a manager for the IDS Ukraine group of companies does not assess the legality of ARMA's actions. IDS Ukraine is a producer of Morshynska and Myrhorodska mineral water.

"The decision of the High Anti-Corruption Court within the framework of considering an appeal regarding the actions of NABU does not establish violations by ARMA and is not an assessment of the legality of the Agency's actions. Judicial oversight is a standard mechanism of a rule-of-law state; it is not accusatory in nature and does not imply the establishment of any guilt," ARMA said in a comment to Interfax-Ukraine provided last week.

ARMA stressed that it acts in strict compliance with current legislation, and that the assets of the IDS Ukraine group, including enterprises producing products under the Morshynska and Myrhorodska brands, were transferred to its management based on rulings by investigating judges.

"These assets are linked to sanctioned Russian individuals, in particular Mikhail Fridman, who is under sanctions imposed by Ukraine, the European Union, the United States, the United Kingdom, and Canada in connection with support for the Russian regime and threats to international security. After seizure, such assets cannot be left without management, as this creates risks of uncontrolled withdrawal of financial flows, their possible depreciation, and loss of economic value. The law directly imposes on the state the obligation to ensure their proper management. That is why ARMA organizes an open and transparent procedure to select a manager through the Prozorro system, where the conditions are published in advance, the criteria are the same for all participants, and each stage of the procedure is recorded in a public digital environment," the agency explained.

ARMA also noted that it continues cooperation with law enforcement agencies, ensures preservation of the economic value of seized assets, conducts transparent procedures, and fully complies with legal requirements, "acting publicly, consistently, and under institutional oversight."

As reported, in the autumn of 2022, by court decision, ARMA received management of corporate rights (including those of the Myrhorod and Morshyn plants), industrial designs, and trademarks of enterprises within the IDS Ukraine group. In April 2023, Carpathian Mineral Waters was selected as the asset manager for the Morshyn plant, but the transfer of the asset into management never took place. In March 2025, ARMA reported termination of the contract as not implemented.

On November 28, 2025, ARMA announced a new tender to find an asset manager for the company. Companies with relevant experience were invited to participate, including investment funds, distributors, and other market participants with appropriate expertise. Applications are being accepted until December 12, 2025.

The tender conditions were criticized by a number of companies willing to participate. Among them were Geological Investment Group LLC, Verkhovtsevo Oil Extraction Plant LLC, and sole proprietor Vsevolod Omelianovych Bilas. Potential participants stated that the tender conditions artificially restrict competition and effectively exclude most Ukrainian companies from managing the assets of Morshynska and Myrhorodska.

Among such requirements, potential participants cited ARMA's demand that bidders have at least 15 narrowly specialized staff members (engineers, power engineers) on payroll, whose higher education credentials must be recorded in the Unified State Electronic Database on Education. However, the database contains complete diploma data only from after 2000. In addition, the bidder must have "production of non-alcoholic beverages" as its primary business activity, making participation impossible for professional asset management companies and consortia specializing in asset management. Separately, the admission of direct competitors of IDS Ukraine to the tender was noted, which is prohibited by the new Law "On ARMA," entering into force after January 30, 2026.

The Antimonopoly Committee of Ukraine (AMCU) accepted a complaint from a number of potential tender participants who requested the removal of discriminatory requirements in the tender documentation for selecting a manager of the seized assets of the IDS Ukraine group.

In September 2024, the Ministry of Justice filed a lawsuit with the High Anti-Corruption Court seeking confiscation of IDS Ukraine's assets and other assets of Russian oligarchs Mikhail Fridman, Petr Aven, Andrey Kosogov, and Rissa Investments Limited in favor of the state. In particular, the case concerns 100% of the shares of PJSC Myrhorod Mineral Water Plant, PJSC Morshyn Mineral Water Plant Oscar, PJSC Industrial and Distribution Systems (IDS), as well as a 100% stake in IDS Aqua Service LLC, Potuzhnist LLC, IVA Private Enterprise, and state-owned enterprise NOVA.COM, which are indirectly owned by Rissa Investments Limited.

In October 2024, IDS Ukraine called on the Ministry of Justice to prohibit ARMA from taking actions to transfer part of the assets to a management company and to carry out nationalization under a scenario favorable to the state.

According to the company's management, this scenario is the least destructive way to seize sanctioned assets. At that time, the group estimated its share of the Ukrainian bottled mineral and drinking water market at more than 40%, including 27% for the Morshynska brand.

On December 25, 2025, the High Anti-Corruption Court granted a lawsuit filed by potential participants in the tender to select an asset manager for IDS Ukraine and ordered the National Anti-Corruption Bureau of Ukraine (NABU) to initiate a pre-trial investigation into alleged abuse of office by ARMA's leadership in selecting a manager for the IDS Ukraine group. According to the HACC ruling in case No. 911/13129/25, the complaint of the lawyer from Asters Law Firm, acting in the interests of New World Value Fund Limited regarding the inaction of authorized NABU officials, specifically the failure to enter information on a criminal offense into the Unified Register of Pre-Trial Investigations, was upheld.