Britain's Meyer Bergman European Retail Partners, due to planned amendments to Ukrainian law, has said that it is suspending its investments and plans to get rid of its assets in Ukraine in the near future, the fund said in a press release on Oct. 8.
“Managing directors made decisions to get rid of our assets in Ukraine in the near future, in particular, Aladdin shopping center [in Kyiv]. In early 2016, after the audit of operations, we plan to transfer Aladdin to the management of the new owner,” the fund said.
Meyer Bergman said that the reason for its decisions is draft law No. 3025, which foresees the seizure of property.
“The draft law concerns only those assets that were received illegally (blackmail, corruption, seizure, illegal seizure of public property), but there are no criteria for establishing unlawfulness in the draft law,” reads the report.
Meyer Bergman said that another negative aspect for the business is the removal of court procedures from the seizure process, which could result in the arrest of seizure of any assets or business in Ukraine.
“We believe that this approach strongly violates our human rights and leaves business in Ukraine unprotected from anarchy. Taking all these aspects into consideration, our board of directors decided to stop investment in Ukraine,” reads the report.
Meyer Bergman plans to warn its business partners and other investment companies against doing business in Ukraine.
As reported, draft law No. 3025 on the special regime of special seizure of property of September 3, 2015 was submitted by MPs Oleh Barna (Petro Poroshenko Bloc) and Tetiana Chornovol (People’s Front).
The draft law envisaged the introduction of a special regime with the special seizure of assets or other property of some individuals and companies, if there are grounds to believe that they are linked to financial corruption or abuse of office.
The draft law included a list of the last names of individuals to whom the special seizure regime is applied: former Ukrainian President Viktor Yanukovych, former acting prime minister Serhiy Arbuzov, former prime minister Mykola Azarov, his son Oleksiy Azarov, former health minister Raisa Bohatyriova, former head of the presidential administration Andriy Kliuyev, MP Serhiy Kliuyev, owner of VETEK Group Serhiy Kurchenko, former prosecutor general Viktor Pshonka, and Kharkiv Mayor Hennadiy Kernes.
