Ownership of the Arsenal factory fell into private hands: court denied motion to seize property in case of damages exceeding 100 million hryvnias

The Pechersk District Court of Kyiv denied the prosecutor from the Office of the Prosecutor General's motion to seize the property.

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

The case concerns non-residential premises in Kyiv on Knyaziv Ostrozkykh Street (formerly Moskovska), 8. Of these, 10 794 sq.m. are registered to Mirra 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 Zavod “Arsenal” during the alienation of the plant's real estate objects that were not subject to privatization.

In 2007, Arsenal entered into joint activity agreements with Corporation NVO “Arsenal”, Skynet LTD LLC and Nova Tor LLC, which were linked to the plant's director. The factory premises were registered as joint fractional ownership and then resold.

In October of 2025 a suspicion was notified to the state registrar who, in 2013, registered the right of joint fractional ownership over the plant's objects.

According to the investigation, as a result of the criminal actions of the state registrar and other persons not yet identified, property left state ownership totaling 134,7 million UAH, i.e., damages were caused in especially large amounts.

According to the text of the suspicion, at first the state registrar refused to register the right of joint fractional ownership due to the absence of title 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 the ownership right to the premises. The registrar whose actions were contested was allegedly, according to her assigned role, to refrain from participating in the court proceedings, not to justify the lawfulness of her actions, not to file objections to the claim, not to challenge the court decision in the appellate and cassation instances, and subsequently to perform the state registration.

In December of 2013 the registrar registered the rights of joint fractional ownership in the real estate, allegedly ignoring the fact that the appellate court had restored the State Registration Service of Ukraine's deadline to appeal the decision that had obliged it to carry out these registration actions.

According to the investigation, the state registrar acted out of mercenary motives, following a prearranged criminal plan aimed at facilitating the appropriation of another’s property in especially large amounts, using the powers granted to her.

In 2016 premises with an area of 10 794 sq.m. were purchased by Mirra Development LLC. In 2020 the company Ost Energy Group LLC also acquired 2240,6 sq.m.

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

Pechersk District Court judge Sergii Vovk, after reviewing the motion, found it unfounded due to the absence of information that this property is the subject or evidence of a crime or was acquired by criminal means.

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

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