A British theatre impresario and her billionaire family are locked in a bitter legal battle with Ukrainian authorities attempting to seize a water company they co-own with a sanctioned Russian oligarch. According to court filings and official statements, the dispute centers on a 34% stake in IDS Ukraine, the producer of the country’s top bottled water brands, held by the Patarkatsishvili family vehicle, New World Value Fund Limited. The corporate holdings have faced a freeze since 2022 due to a separate 49% stake held by Russian investors, including Alfa Group founder Mikhail Fridman, who is under western sanctions for supporting Vladimir Putin’s regime.
The Corporate Tug-of-War Over IDS Ukraine
Ukraine’s asset recovery and management agency, known as Arma, has been tasked with instructing independent management to take over IDS Ukraine, where minority shareholders also include the Georgian government. Yaroslava Maksymenko, head of the agency, stated that officials have repeatedly encountered legal and bureaucratic obstacles stemming from shareholder resistance to relinquishing control. According to Arma, New World Value Fund Limited pursued an unfounded claim of unlawful conduct by agency officials, which Maksymenko characterized as misinformation. An investigation by the National Anti-Corruption Bureau of Ukraine into those claims remains ongoing.
Did you know?
IDS Ukraine has maintained production and supplied consumers with drinking water without missing a single day since the full-scale invasion began in February 2022, operating despite continuous missile and drone attacks.
Allegations of Cyber-Attacks and Financial Scrutiny
Arma officials reported experiencing a cyber-attack during an attempt to find an independent manager for the company, though the agency clarified there is no evidence linking the Patarkatsishvili family to the breach. Maksymenko stated that the agency harbors concerns regarding potential money laundering and value extraction if current management retains control, although no official findings of such criminality have been issued by state authorities. A spokesperson for IDS Ukraine countered these assertions, emphasizing that no competent state body, including the state tax service, has established any facts of money laundering or unlawful fund withdrawal.
Family Background and International Legal Threats
The Patarkatsishvili family shareholding was inherited in 2008 by Liana Patarkatsishvili, her sister Iya, and their mother Inna, following the death of businessman Badri Patarkatsishvili. Badri Patarkatsishvili amassed a fortune during the breakup of the Soviet Union and died of a heart attack in the UK at age 52. Liana Patarkatsishvili recently worked as a producer on a large-scale immersive theatre production titled Storehouse, starring actors Toby Jones and Meera Syal. Representatives for the family stated they have been committed supporters of Ukraine since the invasion and intend to fight the seizure.
“The Patarkatsishvili family strongly believes that an asset should not be taken away from non-sanctioned shareholders against whom there are no allegations or concerns, and is defending this position through all relevant proceedings before the Ukrainian courts and authorities,” a family spokesperson said. They added that if justice cannot be obtained locally, the family will seek recourse through international courts.
Frequently Asked Questions
Who owns IDS Ukraine?
Ownership of IDS Ukraine is split between several parties, including a 49% stake held by sanctioned Russian investors like Mikhail Fridman, a 34% stake held by the Patarkatsishvili family through New World Value Fund Limited, and minority shares held by entities such as the Georgian government.
Why are Ukrainian authorities trying to seize the company?
Ukrainian authorities targeted the corporate holdings due to the ownership stakes held by sanctioned Russian investors linked to Vladimir Putin’s regime, with Arma citing concerns over potential asset extraction during wartime.
Have the non-sanctioned shareholders been accused of wrongdoing?
No official findings of criminality or money laundering have been established against IDS Ukraine or the Patarkatsishvili family by Ukrainian state authorities.
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