The situation surrounding the seized assets of Ukraine's largest mineral water producer, IDS Ukraine—which includes the popular brands Morshynska and Myrhorodska—has encountered another legal obstacle. The new manager appointed following a state selection process is still unable to assume duties due to a court injunction initiated by one of the bidding participants.
Background and ARMA Tender Results
Recall that on September 21, the tender commission at the Asset Recovery and Management Agency (ARMA) officially determined the winner of the selection process: LLC Law Bureau Prioritas. This attempt to choose a manager for the strategic asset, previously owned by Russian oligarch Mikhail Fridman, became the fourth, as three previous initiatives failed or were disrupted.
The main intrigue of the contest was the financial terms offered by participants. Specifically, the Yuvileiny meat processing plant, which also competed for asset management, proposed a manager's remuneration fee of 10%. Meanwhile, Prioritas offered a much more favorable rate for the state of just 0.9%. According to experts, this exact factor may have triggered further legal disputes and fierce competition for the lucrative asset.
Court Injunction and Expert Reactions
However, shortly after the results were announced, the Dnipropetrovsk District Administrative Court, acting on a lawsuit filed by the Yuvileiny meat processing plant, issued a ruling on interim relief. The court strictly prohibited ARMA from signing an official contract with the tender winner and executing acceptance certificates for corporate rights. Public figures and bloggers, in particular Igor Lachienkov, drew public attention to this issue on Telegram, describing the court ban as a de facto blocking of the state selection results.
In turn, prominent lawyer Yevhen Pronin detailed the legal collision. He noted that although the interim relief did not formally strip Prioritas of its winner status, it paralyzed the asset transfer procedure itself. According to the lawyer, the court should have been guided by Part 6 of Article 151 of the Code of Administrative Procedure of Ukraine, which explicitly prohibits securing lawsuits in ways that interfere with official state tender procedures. Pronin also openly characterized the incident as legal pressure on ARMA.
Contradictory Data
A sharp discussion has unfolded in the expert community and public space regarding the legality and beneficiaries of the court blockade. Some observers and lawyers believe that the plaintiffs represented by the Yuvileiny meat processing plant are using administrative litigation mechanisms solely to delay the redistribution of control over the mineral water market. Such actions, commentators note, may indirectly play into the hands of the former Russian owners of IDS Ukraine, who are interested in chaos and maintaining uncertainty around the enterprise.
On the other hand, representatives of the business that initiated the lawsuit insist on their right to challenge the tender results if procedural violations by the organizers are discovered. They argue that protecting their corporate and commercial interests in court is a standard legal procedure guaranteed by Ukrainian law and should not be viewed solely as destructive interference.
Possible Consequences and Company Audit
Prolonging the asset transfer process poses serious risks to the stable operation of plants and tax revenues to the state budget. Previously, the management of IDS Ukraine repeatedly emphasized the need to quickly resolve administrative issues so that the enterprise could function smoothly under martial law conditions. The new manager's plan envisaged an immediate independent audit of the group immediately upon obtaining all legal powers.
Currently, the situation remains in limbo pending the completion of court proceedings in the Dnipropetrovsk District Administrative Court. Future developments will show whether ARMA can defend the results of the transparent tender and transfer Morshynska to the legitimate manager, or if the process will drag on indefinitely.
