Ukraine nationalizes debts of Ocean Plaza shopping center: the way to privatization is open
10 December 2024 15:59
The Appellate Chamber of the High Anti-Corruption Court (HACC) has sided with the state in the case of nationalization of Ocean Plaza’s multimillion-dollar debts to Russian oligarchs Rotenberg. This was reported by the press service of the Ministry of Justice, "Komersant Ukrainian" reports.
In particular, the rights of claim of a non-resident company related to the Rothenbergs were collected to the state, namely
- the right of claim under the loan agreement No. 1 dated 10/27/2009, concluded between IS Lybid LLC and Ethoder Investments Limited, the debt under which amounts to $148.47 million (loan debt), $67.64 million (debt on accrued and unpaid interest)
- the right of claim under the mortgage agreement dated 28.03.2014, concluded between IS Lybid LLC and Ethoder Investments Limited;
- the right of claim under the pledge agreement dated 14.04.2014 between Avangard-Vilarti LLC and Ethoder Investments Limited.
The ruling of the HACC Appeals Chamber comes into force immediately after its announcement and is not subject to appeal in cassation.
It is worth noting that the nullification of claims will allow the State Property Fund to start the process of nationalization of the mall.
As a reminder, in July 2023, the High Anti-Corruption Court nationalized 100% of Avangard-Vilarti LLC. The ultimate beneficial owners of this company were the children of Russian oligarch Arkady Rotenberg. “Avangard-Vilarti owns 66.65% of Investment Union Lybid LLC, which already directly owns the Ocean Plaza shopping and entertainment center.
The remaining 33.35% in IS Lybid is owned by Andriy Ivanov, Vasyl Khmelnytsky’s business partner, through the Integrity Capital fund.
“Avangard-Vilarti founded another company, Itoder Investments Limited. It is to this company that IS Lybid owes a debt of $177.4 million (UAH 6.7 billion).
This company is affiliated with the Cyprus-based Ethoder Investments Limited, which is already directly owned by Rotenberg. And it is to this Cypriot company that the state now owes UAH 6.7 billion.
This loan was taken out precisely to build Ocean Plaza. So, in fact, Rotenberg took a loan from himself.
What we know about the Rotenberg oligarchs
Arkady Rotenberg is a Russian oligarch. He is considered a close friend of Vladimir Putin. He is under international sanctions from Western countries. His fortune is estimated at $3.5 billion.
The Rothenberg family built Nord Stream 2 and the Crimean Bridge. Rotenberg is listed as the owner of the so-called Putin Palace.
In 2020, Russian Forbes named the Rotenbergs the richest family in Russia with a fortune of $5.45 billion.
Since 2014, Rotenberg has been under US and EU sanctions. In October 2022, the National Security and Defense Council imposed sanctions on Rotenberg.
In March 2023, Ukraine nationalized Arkady Rotenberg’s assets, including the Ocean Plaza shopping center in Kyiv.
Igor Rotenberg is a leading Russian businessman, eldest son and heir of Arkady Rotenberg. He is the former owner of Gazprom Drilling and a shareholder of the Platon electronic payment system.
Igor Rotenberg is also subject to sanctions imposed by Western countries.
