The role of Sky Mall shopping mall in Ukrainian judicial system purification

Efficient and powerful judicial system is an integral part of investment-attractive image of any country. The opinion of Arricano Real Estate Plc, the biggest European investor in the area of Ukrainian retail real estate, is that the fact that the president dismissed the judges who violated their oath while trying civil and commercial cases (including the dismissal of Larisa Kalinichenko, a judge of Golosiivskiy district court of Kyiv on 24.02.2016) is the indicator of judicial system purification and a good sign for European investors.

Since 2006, Arricano has invested over 700 mln. USD in construction of six modern shopping malls in Ukraine (Sky Mall shopping mall, RoyON shopping mall, Prospekt shopping mall, South Gallery mall, City Mall shopping mall and Sun Gallery shopping mall).

Construction and development of Sky Mall shopping mall is one of Arricano’s major projects. Nevertheless, since February 2012, Arricano has not participated in management of this facility, has not gained around 2 mln. USD profit per month and has not had access to the project’s accounts. Such glaring violations of foreign investor’s rights in Ukraine became possible in view of numerous fraudulent and raiding actions of Ukrainian partners in Sky Mall shopping mall project involving the officials and public authorities of Ukraine. The latter refers to Ukrgosreestr (registrar D. Selezniov), Desnyanskiy district public prosecutor’s office of the city of Kyiv (“bold birds” prosecutors group – A. Drozd, A. Tenditnyi, S. Lysenko) and Shevchenkivskiy district prosecutor’s office.

When considering the dispute, International Commercial Arbitration authorities, for example, London International Arbitration court, on 31.03.2015, rendered a decision confirming that Arricano Real Estate plc exercised its right for call-option (repurchase) of shares of Assofit Holdings Limited which was in full concordance with arbitration court decision dated 17.08.2014. Moreover, it was Ukrainian law enforcement authorities that violated the Ukrainian law and, as the result, the company’s rights.

Particularly, while considering the whole range of cases related to the interests of ex-partner of Arricano, A. Adamovskiy, in the projects of Sky Mall and Oledo fuel stations (Stockman Interhold S. A.), the judge of Golosiivskiy district court of Kyiv, L. Kalinichenko, violated the venue rules.

Mikhail Merkulov, the CEO of Arricano Real Estate Plc, states, “We believe in Ukraine’s economic potential. The time will come when all of the investors, both foreign and Ukrainian, will be able to count on support of the authorities, compliance with the law and equal rules of game. These are the main factors promoting the improvement and development of investment climate in our country, as well as attracting new financial investments. We have declared Ukrainian potential and new opportunities for business development in Ukraine to international business community time and again in London, Warsaw and Cyprus. Unfortunately, the Sky Mall shopping mall situation is a blow to the reputation of our country’s judicial authorities. We hope, that the recent personnel decisions of Ukrainian president, such as the decisions to dismiss the judge of Golosiivskiy district court of Kyiv, who made illegal decisions in disputes concerning Sky Mall shopping mall violating Ukrainian laws, will become the basis for formation and development of successful and transparent business in Ukraine.”