Ukrainian Court upholds lawsuit by potential bidders in competition to select asset manager for IDS Ukraine
The High Anti-Corruption Court of Ukraine (HACC) has ordered the National Anti-Corruption Bureau of Ukraine (NABU) to launch a pretrial investigation into alleged abuse of office by the management of the Asset Recovery and Management Agency (ARMA) during the selection of an asset manager for the IDS Ukraine group of companies, the producer of Morshynska and Myrhorodska mineral water.
According to the HACC ruling in case No. 911/13129/25, the court upheld a complaint filed by a lawyer from Asters Law Firm on behalf of New World Value Fund Limited regarding the inaction of authorized NABU officials, specifically their failure to enter information about a criminal offense into the Unified Register of Pretrial Investigations.
An authorized NABU official was ordered to enter information into the Unified Register of Pretrial Investigations regarding the commission of a criminal offense, taking into account the distortion of the tender conditions and the creation of conditions for selecting a pre-determined entity as the asset manager of the IDS Ukraine group of companies, which may indicate the presence of a corruption component.
"The ruling enters into legal force from the moment it is announced and is not subject to appeal," the High Anti-Corruption Court ruled.
As reported, in the fall of 2022, pursuant to a court decision, ARMA received for management the corporate rights (in particular, of the Myrhorod and Morshyn plants), industrial designs, and trademarks of enterprises within the IDS Ukraine group. In April 2023, Carpathian Mineral Waters was selected as the asset manager of the Morshyn plant; however, the transfer of the asset into management never took place. In March 2025, ARMA announced the termination of the contract as unrealized.
On November 28, 2025, ARMA announced a new competition to find an asset manager for the company. Companies with relevant experience—investment funds, distributors, and other market participants with appropriate expertise—were invited to participate. Applications were accepted through December 12, 2025.
The competition conditions set by ARMA were criticized by a number of companies prepared to take part in the tender. Among them were LLC Geological Investment Group, LLC Verkhovtseve Oil Extraction Plant, and individual entrepreneur Vsevolod Omelianovych Bilas. Potential bidders noted that the tender requirements artificially restrict competition and effectively exclude most Ukrainian companies from participating in the management of the assets of Morshynska and Myrhorodska.
Among such requirements, potential participants cited ARMA's demand that the bidder employ at least 15 narrowly specialized staff members (engineers, power engineers), whose higher education credentials must be recorded in the Unified State Electronic Database on Education. However, this database contains complete diploma data only for the period after 2000. In addition, a bidder must have "production of non-alcoholic beverages" as its primary business activity. This makes it impossible for professional asset management companies and consortia specializing in asset management to participate. Separately, it was noted that direct competitors of IDS Ukraine were allowed to participate in the competition, which is prohibited under the new Law "On ARMA," set to enter into force after January 30, 2026.
The Antimonopoly Committee of Ukraine (AMCU) accepted a complaint from a number of potential bidders requesting the elimination of discriminatory requirements in the tender documentation for the competition to select a manager for the seized assets of the IDS Ukraine group.
In September 2024, the Ministry of Justice filed a lawsuit with the High Anti-Corruption Court seeking to recover IDS Ukraine's assets and other assets of Russian oligarchs Mikhail Fridman, Petr Aven, Andrey Kosogov, and Rissa Investments Limited in favor of the state. In particular, the claim concerns 100% of the shares of Myrhorod Mineral Water Plant PrJSC, Morshyn Mineral Water Plant "Oscar" PrJSC, Industrial and Distribution Systems (IDS) PrJSC, as well as a 100% stake in IDS Aqua Service LLC, Moshchnost LLC, IVA PE, and NOVA.COM SE, which are indirectly owned by Rissa Investments Limited.
In October 2024, IDS Ukraine called on the Ministry of Justice to prohibit ARMA from taking actions to transfer part of the assets to a management company and to carry out nationalization under a scenario favorable to the state.
According to the company's management, such a scenario is the least destructive way to seize assets subject to sanctions. At that time, the group estimated its share of Ukraine's bottled mineral and drinking water market at more than 40%, including a 27% share for the Morshynska brand.