The Case of Sky Mall Proves that Corporate Raiding is Permitted in Ukraine

June 5, 2016 marked a year since the judgment of the London International Court of Justice of May 5, 2016 made within the framework of the dispute between the shareholders of the company owning the Sky Mall has not been fulfilled. According to this judgment all shares of Assofit Holdings Limited, previously owned by Stockman Interhold S.A. (Beneficiary A.Adamovski) should have been transferred to Arricano's ownership on or before June 5, 2016 for $ 0 as compensation of losses incurred by the company. Despite the judgment made by the London International Arbitration Court on May 5, 2016 in favor of Arricano, Stockman company has neither transferred, nor provided shares transfer within the determined period of time.

Mykhailo Merkulov, CEO of Arricano Real Estate PLC, notes that failure to abide the decisions of international courts in the territory of Ukraine demonstrates the imperfection of the judicial system of Ukraine, corruption and lack of political will of Ukrainian authorities.

"There are positive steps in the strategic course to Europe announced by the President and the Government. But there are no systematic changes in the field of guaranteeing the property rights in Ukraine yet. The rule of law does not work. There are no systemic reforms in the judicial system, - says Mykhailo Merkulov. - And not just because the case of Sky Mall remains open.

In practice we do not observe any signs of civilized development of the society and life with European values, including the rule of law. This year Ukraine has topped the rating of the level of corruption in business from Ernst & Young, though a few years ago it was only in the top ten. It means that the situation is getting worse. Even small projects, start-ups and social projects become victims of raiding. It means that the culture of corporate raiding in Ukraine is flourishing. In this situation, top authorities of the country should demonstrate in practice, not just in words their intolerance to corruption and raiding, systematically participating in programs that implement and guarantee the protection of property rights"

During the year, Arricano repeatedly applied to the President, the Prime Minister, the Speaker of the Parliament, the Members of the Parliament, the Security Service of Ukraine, the National Anti-Corruption Bureau, the General Prosecutor's Office of Ukraine, the Ministry of Justice, the National Bank of Ukraine, the Estonian Embassy, the Ombudsman's Office, the European Business Association, the American Chamber of Commerce asking for help in implementing the decision of the London International Court of Justice's, initiation of official investigations into actions of the law enforcement agencies and officials, the actions of state registrars related to the unlawful seizure and disposal of Sky Mall, to support the investigation of the case of Sky Mall and to form a legal business culture in Ukraine.

These appeals to the representatives of the Ukrainian authorities went unanswered. According to the estimations of lawyers, making of judgments in cases similar to the case of Sky Mall may last for years.

Representatives of Arricano believes that without the assistance of the judiciary and executive authorities, as well as all those who are interested in building of a European state of law, without the political will of the country's leaders, given that corruption is flourishing, corporate raiding is considered to be a normal process, and the development of Ukraine as a state of law attractive for investors is impossible.