On June 18, law enforcement officials in Ukraine launched searches at the State Property Fund amid allegations of undervaluation related to the sale of the Ocean Plaza shopping and entertainment center.
The National Police’s main investigative department is probing potential abuse of power in connection with the sale process of the Ocean Plaza, which was seized by the state following a ruling from the High Anti-Corruption Court. Investigators suggest that certain officials from the State Property Fund may have acted in favor of private entities, potentially setting the stage for the asset to be sold at a price significantly lower than its market value.
Authorities are examining claims of interference in the asset’s valuation, the establishment of auction starting prices, the terms of sale, and the limitation of potential buyers. The prosecution warns that these actions could lead to a sale price that does not reflect the true market value, resulting in losses to Ukraine’s state budget.
As part of the investigation, police conducted authorized searches at the residences of specific officials from the State Property Fund and seized documents deemed relevant to the inquiry. The identities and positions of these individuals have not been disclosed.
The State Property Fund has not yet commented on the ongoing searches.
In May, Prime Minister Yulia Svyrydenko announced the government’s intention to raise approximately 13 billion hryvnias through the privatization of state assets this year, including the sale of Ocean Plaza.
The privatization process for a 66.65% stake in the Investment Union ‘Lybid,’ which owns Ocean Plaza in Kyiv, began in February 2024. Previously, two-thirds of the shopping center’s ownership belonged to Russian oligarch Arkady Rotenberg, but in March 2023, the High Anti-Corruption Court confiscated this asset. By June 2023, the State Property Fund had formalized its rights to the state share in the company owning the shopping center.
Ukrainian law enforcement is investigating potential undervaluation of the Ocean Plaza shopping center prior to its sale. Searches have been conducted at the State Property Fund amid concerns over possible abuse of power and financial losses to the state budget.