A SENIOR political figure who is also one of Ukraine’s richest businessmen has intervened in the ongoing battle for control of a valuable shopping mall in Kiev formerly owned by the family of Seán Quinn.
The first vice-prime minister of Ukraine, Valeriy Khoroshkovsky, has instructed the local judicial council to investigate a series of recent judgments by the Kiev courts that have frustrated efforts by the Irish Bank Resolution Corporation to assert control over the mall which produces an annual rent roll of approximately $10 million (€8.8 million).
The IBRC successfully appointed a receiver last year to Swedish companies that owned a number of valuable properties in eastern Europe that Mr Quinn had bought for his children over the past decade and against which Anglo Irish Bank had securities.
However, the efforts of the Swedish receiver to assert control over the Ukrainian company that in turn owns the mall, has been repeatedly frustrated by court rulings in Kiev. Claims by an offshore company that it is owed large sums equal to the value of the mall by the Ukrainian company, have also been entertained by the courts.
The move by such a senior political figure is seen by local observers as a significant development in the battle for the high-profile asset. The IBRC has engaged a public relations company in Kiev as part of a campaign calling on the Kiev government to review the issue in light of a series of court rulings.
Mr Khoroshkovsky’s move follows a meeting on Tuesday of the Interdepartmental Commission on Countering Illegal Mergers and Takeovers of Companies, which he heads.
The judicial council oversees the judiciary in Ukraine and hires and fires judges. Mr Khoroshkovsky also asked the interior ministry, general prosecutor’s office and security service of Ukraine to put an end to extra-legal “raider” attacks on properties.
“The situations that we examine at committee meetings develop according to one scenario. The court makes an illegal ruling. The authorities don’t react accordingly. As a result, property gets taken away from the rightful owner,” Mr Khoroshkovsky said in a press release.
“If the government doesn’t take action with the purpose of taking sides or correcting the situation, then it is practically an abettor of unlawful action.”
Kiev’s business community welcomed the move by Mr Khoroshkovsky. “I hope that this can be perceived as a positive step in the right direction of improving the investment climate,” said Anna Derevyanko, executive director of the European Business Association.
Mr Khoroshkovsky is a former minister for finance and head of the security service. His business interests include a large Ukrainian media group, UA Inter Media Group, and he is generally considered to be one of Ukraine’s richest businessmen.
