Arricano Real Estate Plc is a company that owns a network of shopping and entertainment centers in Ukraine. Recently, the head of the board of directors, Margus Kurm, expressed his concerns about the pressure from law enforcement agencies and the arrests of the company’s properties in Ukraine. Kurm stated that there is a lack of rule of law in Ukraine, where honest businesses cannot resolve issues within the legal framework. This situation has led Kurm to consider taking the matter to international arbitration.
Kurm highlighted the absurdity of the criminal investigation against Arricano in Ukraine, which accuses the company of financing a state-terrorist Russia. He pointed out that this accusation is baseless, as Ukrainian companies have been restricted from conducting financial operations outside Ukraine since 2022. Despite providing transparent financial records, law enforcement agencies seem uninterested in the truth.
The situation with Arricano is not unique, as Kurm mentioned a similar case with Sky Mall, where corrupt officials illegally seized the company’s business. Foreign investors initiated international arbitration proceedings worth millions of dollars, but the process was halted due to the conflict with Russia in 2022. Kurm emphasized the importance of supporting Ukraine while also protecting the interests of investors.
Kurm criticized the corrupt practices within Ukrainian law enforcement and judicial systems, where businesses are targeted for personal gain. He warned that such actions deter foreign investments, leading to the closure of businesses and a negative impact on the economy. Kurm urged the government to uphold the rule of law and ensure a fair business environment for all investors.
Arricano previously refuted manipulative statements made by a deputy head of ARMA, Grigol Katamadze, regarding the operation of CITY MALL in Zaporizhia. The company clarified that the shopping center is operational, contributing to the economy, and providing employment opportunities in the region. Despite facing challenges, Arricano remains committed to its business operations and supporting the local community.
In conclusion, the challenges faced by Arricano Real Estate Plc in Ukraine reflect broader issues of corruption and lack of transparency in the country’s business environment. The company’s struggle highlights the importance of upholding the rule of law and protecting investors‘ rights to ensure sustainable economic growth. It is crucial for the Ukrainian government to address these issues and create a fair and conducive environment for businesses to thrive.