Arricano Real Estate PLC (Cyprus) (hereinafter referred to as Arricano), which owns 4 shopping malls in Ukraine (Kyiv, Zaporizhzhia, Kryvyi Rih) through its Ukrainian subsidiaries, announces the manipulative statements of the official of the National Agency of Ukraine for the Detection, Search and Management of Assets Obtained from Corruption and Other Crimes (hereinafter referred to as ARMA) regarding the operation of CITY MALL in Zaporizhzhia. 

Thus, on 26.07.2024, a notice of examination by the Deputy Head of the ARMA - Hrihol Katamadze - of the CITY MALL was posted on the official website of the ARMA. In particular, the Deputy Head of the ARMA noted that the facilities "should not be idle, but should replenish the state treasury."

In this regard, Arricano considers it necessary to emphasize that the CITY MALL shopping mall does not "stand idle", as the ARMA official noted, but works daily for the benefit of Ukraine, paying taxes to the state budget, providing work for tenants, as well as goods and services for consumers in the frontline territories of the Zaporizhzhia region. In particular, for 2022-2024, the company that owns the CITY MALL shopping mall paid almost UAH 67 million to budgets of various levels. And the total amount of taxes paid for 2022-2023 to the Arricano Group companies in Ukraine amounted to more than UAH 326.8 million.

Instead, the actions of law enforcement agencies (the Prosecutor's Office and the Security Service of Ukraine) and the ARMA regarding groundless arrest followed by seizure of property of a foreign investor will lead to a completely opposite result – to investment lawsuits against the state.

We have repeatedly stressed that the decision of the investigating judge of the Solomianskyi district Court of Kyiv to transfer shopping malls to the ARMA management was made on the basis of absolutely unfounded accusations, is illegal and has signs of raiding Arricano's assets. This is indirectly confirmed by the fact that on July 25, 2024, another investigating judge of the Solomianskyi district Court of Kyiv cancelled the arrest of one of our assets – the RayON shopping mall (Kyiv), recognizing the arguments of the prosecutor's office as insufficient.
 
As the situation regarding the actual raiding of our property continues, and ARMA notes the early announcement of the competition at the choice of the manager, we consider it necessary to bring important warnings to the attention of all potential participants in the competition:
-    there is no court decision that would deprive the company owning the shopping mall of the right to operate the respective shopping mall (including CITY MALL);
-    any attempts to seize Arricano's assets in Ukraine will directly contradict the rulings of the investigating judge of the Solomianskyi district Court of Kyiv dated 10.10.2023 in cases No. 760/19736/23 and No. 760/22945/23 and may have signs of a criminal offense. 

During 2023-2024, the assets of Arricano Real Estate PLC (Cyprus) in Ukraine are under systemic pressure from law enforcement agencies, the company considers the ultimate goal of this pressure to seize its assets in Ukraine. 

At the same time, Arricano Real Estate PLC (Cyprus) has repeatedly stressed that it will use all available means to protect its rights, including outside Ukraine. And although we would like to avoid a negative impact on the investment climate and the economy of Ukraine, the actions of certain agencies leave us no choice.