ILI experts highlighted shortcomings in the work of ARMA, using the case of sanctioned businessman Pavlo Fuks as an example

The situation involving the return of a seized house and land plots to Pavlo Fuks points to a number of systemic problems in the management of assets seized in criminal proceedings and exposes weaknesses in ARMA’s operations, ILI experts stated.

“This concerns high-value property – a house with an area of 2,458 sq. m and land plots in Kozyn, with a market value of UAH 213.9 million as of March 2025. Despite the asset being seized back in 2023, ARMA failed to appoint a manager,” the experts noted.

According to analysts, throughout 2025 ARMA announced seven tenders to select a property manager, but none were successful, effectively freezing the asset.

“As a result, the state budget received no revenue. It is unclear who used the asset during the period of arrest and under what conditions, and there is no information on signed transfer and acceptance acts,” the experts said.

ILI noted that after amendments to the ARMA law, the new rules for selecting asset managers have not yet been fully implemented. The system is not operational, and all necessary regulations have not yet been adopted. This means that even if the asset is re-arrested and transferred for management again, it is impossible to predict when a new tender under the updated procedure will be announced.

“This case is not unique. Similar situations involving the return of assets that had been seized and transferred to ARMA have already occurred. In such cases, the state only incurs financial costs for asset valuation, which are not reimbursed by a manager. There is no revenue to speak of,” the analysts added.

They believe the Fuks case highlights several key issues:

• State expenses for asset valuation are not compensated if procedures fail or the seizure is lifted. The only solution is to increase the share of successful tenders to offset these costs in the future.
• Inefficiency of the old system for selecting asset managers, which led to idle assets and lost potential budget revenue. These shortcomings were the reason behind ARMA’s reform, but the new system is still not functioning.
• Lack of coordination between ARMA, law enforcement agencies, and the judiciary, which allows control over seized assets to be returned.

“Without the proper launch of the new selection system and its effective operation, such cases may continue to occur, posing both financial and reputational risks for the state,” ILI concluded.