Ukraine’s appeals court denies prosecutors’ request to freeze accounts of Kryvy Rih’s largest mall

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17:29 06.12.2024
Ukraine's appeals court denies prosecutors' request to freeze accounts of Kryvy Rih's largest mall

On December 5, 2024, the Kyiv Court of Appeals rejected a prosecutor's request to freeze the bank accounts of Ukrpangroup LLC, the owner of the Sun Gallery shopping mall in Kryvy Rih, according to Arricano Real Estate PLC (Cyprus), which owns shopping centers in Ukraine through its subsidiaries.

Earlier in 2024, the mall sustained significant damage from a large-scale missile strike by Russian occupation forces but was restored and reopened by the company in the summer of this year.

"Despite the difficulties and obstacles posed by law enforcement agencies, we restored and resumed operations at the Sun Gallery, as Arricano understands the importance of this facility for Kryvy Rih's infrastructure and its residents. Freezing accounts and potentially transferring the asset under ARMA's control could have led to the mall's complete shutdown. We are pleased this outcome was avoided," said Margus Kurm, Chairman of the Board at Arricano Real Estate Plc, as quoted in the statement.

This is the third appellate decision in the last two months denying the prosecution's efforts to impose restrictions on Arricano's operations in Ukraine.

"We welcome the court's fair stance but remain cautious about future risks. Unfortunately, our experience in Ukraine suggests that parties interested in seizing company assets may continue their unlawful actions by leveraging influence over law enforcement agencies. However, we trust the Ukrainian justice system and hope for an honest investigation and resolution of this case," Kurm said.

The appellate court's December 5 ruling is currently the last in a series of cases heard at all judicial levels.

Throughout 2023 and 2024, Arricano's Ukrainian subsidiaries have faced systemic pressure from law enforcement agencies, which, according to the company, aims to take control of the European investor's assets in Ukraine. Arricano continues to report the status of this case to Ukrainian and EU institutions involved in protecting businesses from unlawful pressure.

Arricano Real Estate Plc specializes in developing shopping and entertainment centers and is a leading real estate developer in Ukraine. Through its Ukrainian subsidiaries, the company owns and operates four malls with a total area of 147,600 square meters: RayON and Prospekt in Kyiv, Sun Gallery in Kryvy Rih, and City Mall in Zaporizhia. Arricano also owns a 49.9% stake in the Sky Mall shopping center (Kyiv) and land plots for three future projects currently in the design stage. The company is also constructing the Lukianivka shopping center in Kyiv.

According to Opendatabot, Arricano Real Estate Plc's revenue in 2023 was UAH 36.16 million, 52.8% higher than in 2022, with net profit increasing 2.28 times to UAH 7.17 million.

Source: www.en.interfax.com.ua

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