Ukrainian officials are seeking to seize a bottled water company partly owned by the Patarkatsishvili family, a billionaire British family connected to the theater world, as part of ongoing efforts to nationalize key assets during the conflict with Russia.
The dispute centers on the Patarkatsishvili family’s 34% stake in IDS Ukraine, producer of the country’s largest bottled water brands, which they co-own with Russian investors including oligarch Mikhail Fridman, who faces Western sanctions for his support of Vladimir Putin.
Company Ownership and Sanctions
IDS Ukraine’s corporate holdings were frozen in 2022 following Ukraine’s crackdown on companies linked to Russian investors amid the war. The 49% Russian-held stake in the company, mainly by Fridman from the Alfa Group conglomerate, triggered the government intervention.
The State Asset Recovery and Management Agency (Arma) in Ukraine has been tasked with appointing independent management to oversee the company, whose other minority shareholders include the Georgian government. Yaroslava Maksymenko, head of Arma, cited resistance from shareholders as a key obstacle in transferring control.
Claims, Legal Challenges, and Cyber-Attacks
The agency also reported a cyber-attack during efforts to place an independent manager but did not accuse the Patarkatsishvili family. Maksymenko criticized New World Value Fund Limited, the Patarkatsishvili investment vehicle, for alleging unlawful conduct by Arma officials, calling these claims misinformation. An investigation by Ukraine’s National Anti-Corruption Bureau into these allegations is ongoing.
While concerns about potential money laundering and asset stripping have been voiced by Arma, no official criminal findings against IDS Ukraine’s management have been made. Meanwhile, the family is engaged in court battles to prevent nationalization of the company’s shares.
Family Response and Company Statements
The Patarkatsishvili family, who inherited the shareholding in 2008 from businessman Badri Patarkatsishvili, maintains they have been committed supporters of Ukraine since Russia’s full-scale invasion began in February 2022.
A family spokesperson stated that the shareholders face unfair targeting and will seek justice through international courts if necessary, emphasizing they have no allegations or concerns against them. They insist the asset should not be seized from non-sanctioned shareholders.
IDS Ukraine’s spokesperson affirmed that the company has complied with Ukrainian laws, including tax and financial regulations, and denied any awareness of investigations into money laundering or illicit financial activities. The company has reportedly continued operations throughout the conflict, supplying drinking water despite missile and drone attacks.
The spokesperson also condemned implications by Arma linking IDS Ukraine to the cyber-attack as false and irrelevant.
Context and Significance
The government views IDS Ukraine as a strategic asset during wartime, increasing the pressure to nationalize ownership partly held by Russian businessmen. The family’s involvement links significant economic interests and cultural ties, as Liana Patarkatsishvili is noted for recent immersive theater productions in the UK.
