Arricano Real Estate PLC (Cyprus), which owns 4 shopping malls in Ukraine (Kyiv, Zaporizhzhia, Kryvyi Rih) through its Ukrainian subsidiaries, announces the blocking of the activities of CITY MALL (Zaporizhzhia) and RayON shopping mall (Kyiv).

On June 17, 2024, at the request of the prosecutor of the Kyiv Regional Prosecutor's Office, the investigating judge of the Solomianskyi district Court of Kyiv seized the accounts of Pryzma Alfa LLC and Livoberezhzhiainvest PrJSC, which manage the CITY MALL (Zaporizhzhia) and RayON shopping mall (Kyiv), respectively.

These court decisions actually blocked not only the economic activities of these companies, but also deprived them of the opportunity to pay national taxes and fees (VAT, corporate income tax, environmental tax) and fulfill credit obligations to Ukrainian banks.

"While President Zelensky and the Ukrainian government declare the beginning of negotiations with the EU and the immutability of the European path of Ukraine, the law enforcement agencies, the prosecutor's office and the courts make decisions that are unthinkable in the EU state. The court's decision to seize the accounts of the Arricano Group companies in Ukraine is absurd. The state deprived us of the opportunity to fulfill our obligations to Ukraine and creditors – said Margus Kurm – Chairman of the Board of Directors of Arricano Real Estate PLC – These actions once again confirm that in relation to our group of companies, Ukrainian law enforcement agencies and courts are fulfilling someone's order. "

The company considers the decisions of the investigating courts to be biased and selective.

"Under the same grounds and justifications, some investigating judges decide to seize the accounts, while others believe that there are no legal grounds for seizing the accounts. Thus, in March and May this year, other investigating judges of the same court refused to satisfy identical petitions to the prosecutor. What could have changed in recent days is unclear,"says Margus Kurm. -  In fact, what is happening with Arricano's assets in Ukraine is raiding with the involvement of state bodies. It is obvious that the result of such actions may be a complete stop in the work of shopping malls in Kyiv and front-line Zaporizhzhia and Kryvyi Rih." 

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 decision to seize the accounts of Pryzma Alfa LLC and Livoberezhzhiainvest PrJSC as another increase in pressure from law enforcement agencies, the ultimate goal of which is to seize the assets of Arricano Real Estate PLC (Cyprus) in Ukraine.

The company will inform the relevant EU diplomatic agencies, public and business associations about such actions on the part of law enforcement agencies.