Final concept for managing confiscated Russian assets in Ukraine to be presented in two months – Arakhamia

KYIV. Sept 16 (Interfax-Ukraine) – The final concept of how Ukraine plans to manage confiscated Russian assets will be presented in two months, David Arakhamia, leader of the Servant of the People parliamentary faction, has said.

"A separate mechanism is being developed for large assets. The main headliner is the National Anti-Corruption Agency, they are the most active in the sanctions policy. An interdepartmental working group in the Cabinet of Ministers is now developing a calendar schedule for the confiscation of assets. Priority is Russian state assets, then assets of Russian oligarchs, and then – medium business. The final concept should be presented in two months," he said in an interview with Forbes.

According to him, these assets should not turn into liabilities on the balance sheet of the state – for this they need to be dealt with, and not "seize accounts and hang up a lock."

"If you simply seize companies and freeze work, then they lose their investment attractiveness. Now there is an idea to transfer part of Russian assets to the State Property Fund for management and further privatization. ARMA will remain as a legal tool for transferring these assets. ARMA are ineffective and, as you can see, rarely anyone is satisfied with them," Arakhamia said.

The second option, according to the parliamentarian, could be the sale of confiscated assets to investors. "But there are many legal nuances here, as the owners can file with European courts and, if they win, demand compensation. Now we are looking for a solution to minimize these risks," he said.

Arakhamia said that, in general, the strategy for such assets is to ensure the operation of the company without the participation and influence of the Russians, "so that the asset does not devalue, develop a mechanism with minimal risks of confiscation and then sell it."