Arricano Real Estate Plc (Cyprus), which owns four shopping centers in Ukraine (in Kyiv, Zaporizhia, and Kryvy Rih) through its Ukrainian subsidiary companies, reports the blocking of operations at the CITY MALL shopping center (Zaporizhia) and RayON shopping center (Kyiv).

According to a press release from Arricano, on June 17, 2024, upon the request of the prosecutor of the Kyiv Regional Prosecutor's Office, an investigative judge of the Solomiansky District Court of Kyiv imposed a seizure of the accounts of Pryzma Alfa LLC and JSC Livoberezhiainvest, which manage the CITY MALL (Zaporizhia) and RayON (Kyiv) shopping centers.

The company said that these court decisions have effectively blocked not only the economic activities of the specified companies but also deprived them of the ability to pay national taxes and fees (VAT, corporate income tax, environmental tax) and fulfill credit obligations to Ukrainian banks.

"While President Zelenskyy and the Ukrainian government declare the start of negotiations with the EU and the unchanging European path of Ukraine, law enforcement, the prosecutor's office, and the courts are making decisions that are unthinkable in an EU country. The court's decision to arrest the accounts of the Arricano group companies in Ukraine is absurd. The state has deprived us of the ability to fulfill our obligations to Ukraine and creditors. These actions once again confirm that Ukrainian law enforcement and courts are executing someone's order against the group of companies," said Margus Kurm, Board Chairman of Arricano Real Estate PLC.

The company considers the decisions of the investigative judges biased and selective.

"Under the same grounds and justifications, some investigative judges decide to seize accounts, while others believe there are no legal grounds for such seizure. For example, in March and May of this year, other investigative judges of the same court denied the prosecutor's identical motions. What could have changed in the past few days is unclear. Essentially, what is happening with Arricano's assets in Ukraine is the illegal seizure involving state authorities," Kurm said.

He added that these actions could result in the complete shutdown of all Arricano shopping centers in Kyiv, Zaporizhia, and Kryvy Rih.

According to the press release, during 2023-2024, the assets of Arricano Real Estate Plc (Cyprus) in Ukraine have been under systemic pressure from law enforcement. The decision to seize the accounts of Pryzma Alfa LLC and Livoberezhiainvest JSC is seen by the company as another intensification of pressure by law enforcement, with the ultimate goal being the seizure of Arricano Real Estate Plc's (Cyprus) assets in Ukraine.

The company will inform relevant EU diplomatic agencies about these actions by law enforcement authorities.