The Arsenal’s property transferred into private hands: court denied seizure in case of over 100 million hryvnias in losses

The Pechersky District Court of Kyiv denied the prosecutor from the Office of the Prosecutor General’s request to seize the property.

This was reported by “Judicial Reporter” citing the ruling dated 22 September.

These are non-residential premises in Kyiv on Knyaziv Ostrozkykh Street (formerly Moskovska), 8. Of them, 10 794 sq. meters are registered here to Mira Development LLC. Another 2240 sq. m. on floors 3–6 of the laboratory and utility building belongs to Ost Energy Group LLC.

A pretrial investigation has been ongoing since 2017 into alleged abuse of office by officials of the state enterprise Plant “Arsenal” during the disposition of the plant’s real estate objects that were not subject to privatization.

In 2007, Arsenal concluded joint activity agreements with the Corporation NVO “Arsenal”, Skynet LTD LLC and Nova Tor LLC, which are linked to the plant’s director. The plant’s premises were registered as undivided partial ownership and then resold.

In October 2025 a suspicion was notified to the state registrar who in 2013 registered the right of undivided partial ownership of the plant’s assets.

According to the investigation, as a result of the criminal actions of the state registrar and other as-yet-unidentified persons, state-owned property was alienated totaling 134,7 million hryvnias, i.e., damage was caused in especially large amounts.

According to the text of the suspicion, at first the state registrar refused to register the right of undivided partial ownership due to the absence of title-establishing documents for the property.

Then Corporation NVO “Arsenal”, Skynet LTD LLC and Nova Tor LLC allegedly conspired with the registrar. The plan was to obtain a court decision obliging the State Registration Service of Ukraine to carry out state registration of ownership rights to the premises. The registrar, whose actions were being challenged, allegedly, according to her assigned role, was supposed not to participate in the court proceedings, not to justify the legality of her actions, not to file objections to the claim, not to appeal the court decision in the appellate and cassation instances, and subsequently to carry out the state registration.

In December 2013 the registrar registered rights of undivided partial ownership in the real estate, allegedly ignoring the circumstance that the appellate court had restored the State Registration Service of Ukraine’s time limit to appeal the decision that had obliged it to carry out those registration actions.

According to the investigation, the state registrar acted out of personal gain, executing a premeditated criminal plan aimed at facilitating the misappropriation of another’s property in especially large amounts, using the powers granted to her.

In 2016 the premises totaling 10 794 sq. m. were purchased by Mira Development LLC. In 2020 the company Ost Energy Group LLC also acquired 2240,6 sq. m.

The prosecutor filed a petition with the court to seize the property, but did not appear at the court hearing.

Judge Serhii Vovk of the Pechersky Court of Kyiv, having examined the petition, deemed it unfounded due to the absence of information that the property is the object or evidence of a crime or was acquired by criminal means.

The ultimate beneficial owners of Mira Development LLC, through Cypriot companies, are businessman Vasyl Khmelnytskyi and the son of the former mayor of Kyiv, Stepan Chernovetskyi.

The ultimate beneficial owner of Ost Energy Group LLC is lawyer Oksana Baltutska. In June 2026 this company founded North Hub LLC, whose director became businessman Serhii Dyadechko. The enterprise is registered at the address of the Arsenal plant and specializes in leasing real estate.