The Institute for Legislative Ideas analyses the effectiveness of seized asset management: the case of seized ships

The Institute for Legislative Ideas continues to systematically monitor the activities of the Asset Recovery and Management Agency (ARMA). Our focus is on the effectiveness of the process of managing seized assets: what assets are transferred to management, what difficulties arise at each stage, and what systemic factors hinder ARMA from performing its functions in the interests of the state.

Using specific cases, we demonstrate real problems and possible ways to solve them. One of the cases analysed is the transfer of 10 seized ships in the ports of Izmail and Chornomorsk to management. The ships were put up for auction in two separate lots, but due to limited competition, a single private company won both auctions.

The key challenge for the management of the ships was a court ban on their departure from the ports. In this state, the assets cannot perform their main function — transporting cargo by sea — and effectively become floating warehouses. This increases storage costs, reduces their market value and creates an additional burden on the ports.

State authorities have attempted to change the restrictions, but the risk of losing assets or material evidence in criminal proceedings has halted this process. Instead, it is proposed to consider the possibility of selling such assets, as has already been done with the tanker Nika Spirit, which allowed funds to be raised for the budget.

The study also draws attention to shortcomings in competitive procedures, in particular the lack of requirements for the technical capacity of participants and the small number of applicants, which raises questions about the transparency and efficiency of state asset management.

📎 For more information, please see the full analytical note at link.

Докладніше

Development, improvement and monitoring of the implementation of asset management legislation in Ukraine

Останнє оновлення: 5 May 2025

To develop and implement an effective and transparent system of public governance by the Ministry of Economy of Ukraine in terms of managing enterprises and other assets whose operations have been blocked due to the imposition of sanctions, in order to eliminate the current destructive impact on the state economy.