Thoughts on Ukraine

Head of the Asset Recovery and Management Agency Olena Duma on the challenges facing the system

Ms. Duma, you have been heading ARMA since June 30, 2023. What were the main challenges and tasks you faced at that time?

Challenges and tasks change over time. This is a very good question, because when you achieve certain results, they change and increase. And this is about efficiency.

Starting to do what is necessary, step by step, you do what is possible, and later you realize that you have actually done what was impossible before.

In fact, at that time, the challenges were formed by society and international partners. The tasks were clearly defined at the stage of the competition for the position of the Head of the National Agency, which took place from December 2022 to July 2023. A deep awareness of the purpose of the state body, the fierce struggle against the rules (which accompanied the competition), the resonance of statements and news in the media that it was even better to liquidate the agency meant only one thing - either I could restore confidence in the agency and deliver results to the state and society, or the agency really has no right to exist.

My analysis of the state of affairs of ARMA from 2016 to 2023 is more than critical. And it was this analysis that shaped my personal tasks, priority, step-by-step, and systemic.

The budget for all 8 years for the agency amounted to UAH 1.5 billion. For the last four years in a row, it has been UAH 189 annually, and it was reduced precisely because of the corruption component and the existence of criminal proceedings against agency officials. We can talk about efficiency, among other things, if it generates revenues for the country's budget. But this was not the case. Everyone in the country was aware of two related sites through which seized assets were sold with losses of hundreds of millions of hryvnias. Both in Ukraine and abroad, which is very important, for 8 years in a row the question was raised as to why the Register of Seized Assets was closed. After all, this is not only a requirement of a special law and European directives, it is a requirement for everyone to see: how many seized assets there are in all criminal proceedings, how many of them have been transferred to the agency, how much benefit (income) the state has received, how much seized property has been transferred abroad and for what amounts, the number of agreements concluded, including interagency international agreements that would strengthen not only the state body but also Ukraine in its relations with other countries.

So my first task was to open the Register. This is the foundation of transparency and the beginning of all processes. To be honest, it was a huge risk. Within a month, my team and I had to convince other agencies (of the security forces) that it was possible during the war and to take into account the warnings. The government supported the agency's proposals, which significantly accelerated the result. But this was only the tip of the iceberg, because the point is in the details and we faced the fact that the Register was not complete, needed to be restructured, the Terms of Reference for it were developed back in 2017, and synchronization with the Prozoro platforms was out of the question. On the day the Register was opened - on the Independence Day of Ukraine in 2023 - we managed to manually enter all the data from the cabinets and shelves by scanning the court rulings, and it was a figure of 53 thousand records of seized assets in all criminal proceedings.

Today, these are different numbers: 364 thousand records in all proceedings and more than 72 thousand records transferred to the agency. It would be more eloquent to speak in terms of money. We can talk about the value of more than UAH 200 billion in assets transferred to ARMA, and assets traced by the agency abroad in criminal proceedings and which we are seeking to return to Ukraine - more than USD 100 billion.

It should be understood that all figures are dynamic, as the agency receives an average of 500 court decisions every day, including both seizure and release of assets. The argument for the lack of an accurate value is the need to unify the rules, because imagine if it is possible to add together the values specified in the authorized capital (which can be either understated or overstated, from thousands of hryvnias to billions, and on paper), the price of real estate under a purchase and sale agreement, the value of an asset that is rapidly losing its value, or the value of an asset for which the court decision contains only the book value. This is legally illiterate and does not correspond to the facts. Therefore, only after a competitive appraisal is performed by a competitively selected appraiser can the market value of an asset be established.

The second step implemented is the task of a full inventory and audit of the agency. On my initiative, in July 2023, the State Audit and the audit of the Accounting Chamber for the periods 2022-2024 were conducted. Yes, we had to report for the periods of our predecessors. And these are comprehensive audits in all areas, not a page and a half of a “shadow report” with statistics on asset tracing and conclusions on ineffective management and recommendations for rebooting the body or a new competition. in 2023, the competition was completed, the relevant decisions of the Government were approved, and in a year and a half, the body has already been transformed without the support or assistance of those who continue to talk about it so publicly. Our difference is that we do not talk, we do and deliver results.

For example, information is available on management revenues for previous periods (2022 - the budget received UAH 34.8 million). In 2024 alone, we are talking about more than UAH 12.3 billion, and this is not the only factor of success, but the beginning.

ARMA gained special importance during the war and became a tool of assistance for our Defense Forces. UAH 8 billion of ARMA's funds have been allocated to the Armed Forces of Ukraine. In addition to strengthening the country's defense, the funds in domestic government bonds are working effectively and the state received a net profit of almost a billion hryvnias in 2024.

My idea to buy domestic government bonds in foreign currency has been implemented by amendments to the law on ARMA, and from now on, everything that will be sold from the assets withdrawn abroad by criminals will also be used as a weapon against the enemy.

There is always something to work on. As an example, the net income of UAH 432 million from the management of 1.8 billion sanctions funds written off by the agency has already been transferred to the Fund for the Elimination of the Consequences of Armed Aggression. I ask myself, can we do more? Yes, we can, and I have been talking about this publicly for a year and a half when I initiate changes to the law to achieve such results. And if the parliament had adopted these changes by approving draft law 6233 or 11280-1, the country would have already received additional billions. This course is the main goal of our work. This means that after the approval of the next draft law (10069) on authorizing ARMA to sell sanctioned assets (which are already in its management as physical evidence), the agency will strengthen Ukraine's defense capabilities.

In a year and a half of work, we have managed to develop, approve and submit to the Parliament the bills that our military, veterans and their families are waiting for.

The third step is the regulatory framework: initiating, developing, agreeing and approving new rules and procedures. After all, it is impossible to change or reform, to approve decisions, to elect in a new way when the old rules are in force. and unfortunately, the “old team”. The most difficult thing is to start working with unmotivated employees. If you have like-minded people and a team, everything else depends only on perseverance and sticking to the goal.

I am proud that I have managed to form such a strong core of professional, principled people worthy of our time. During the year, 80 percent of the agency's human resources were renewed, including deputies and heads of departments (which used to be directorates).

y the way, this is not only an example of how we managed to turn the negative perception of ARMA in Ukraine and abroad into a positive perception and trust in the agency, but also an example of national transformation. We managed to achieve these results solely on our own and without any support from international technical assistance, with a budget of UAH 189 million per year.

So, based on my own experience, I share President Zelensky's Internal Resilience Plan, where the first point is “Unity”.

With unity, even the smallest things grow, and with discord, even the biggest things will fall apart.

(By the way, I really believe that this will happen to the enemy federation)

I emphasize this because such unity must be systemic, with all authorities, ministries and departments, and it is precisely what Ukraine and our people lack in order to survive, overcome, win and revive.

Returning to the issue of the legislative framework, what we have succeeded and failed to do, I will speak frankly but honestly. The truth is ready, and only history will put everything in its place.

We have managed to develop and approve laws on the purchase of military bonds in foreign currency, payment of customs duties from the sale of seized assets, approve and implement: amendments to orders both internal and with law enforcement agencies, approve the Asset Recovery Strategy 2023-2025, the composition of the Interagency Working Group and the Action Plan, approve procedures and rules for the selection of managers, the procedure of the Cabinet of Ministers of Ukraine on the sale of seized assets, and for the first time in recent history, develop and approve a procedure for the sale of seized assets withdrawn by criminals. I believe that we will return billions from their sale to the budget. After all, the criminally acquired funds were used to purchase luxury real estate, ships and aircraft, antiques and art, land plots and maritime rights, usually with the intent to conceal them.

The priority of the draft laws is determined and dictated by the state of war and the needs of those heroes who are laying down their lives for our freedom.

For example, I recently signed a memorandum with the Coordination Council on Veterans' Affairs under the President of Ukraine. This document is a real support for those who need to receive protection from the state, healthcare, rehabilitation, support for family members and return to peaceful life. The draft law developed and submitted to the Parliament (reg. No. 11009 of 12.02.2024) will allow for a simplified procedure to rehabilitate military personnel and war veterans at seized health resort facilities.

I have already mentioned an equally important draft law (Reg. No. 10069 of 18.09.2023), which, in addition to the expediency of selling sanctioned assets, provides for the unblocking of the management of seized corporations (so as not to ask for the consent of the criminal/enemy) by excluding part 7 of Article 21 of ARMA Law and selling those sanctioned assets that are already managed by ARMA in accordance with criminal proceedings and a court decision. It is cynical and absurd today, and for three years now during the large-scale war, when I observe public slogans from the rostrum of the Parliament by well-known MPs calling for the expediency of approving such changes, while not voting for them. This means that thousands of enterprises where 100% of the corporate rights belong to the Russian Federation cannot be transferred to an elected manager without the consent of the enemy owner and bring income to Ukraine. The President of Ukraine has identified this bill as an urgent one, and we are tirelessly pursuing victory on the fourth attempt, after the failed votes in the parliament. I have no doubt that history will reveal all the wolves in sheep's clothing.

The National Agency has been tasked with implementing EU Directive 2024/1260 of the European Parliament and of the Council of 24.04.2024. ARMA has already developed a draft law on asset recovery and freezing. This is a new era that will give impetus to the entire system. International Directives dictate new rules and determine the need to establish at the legislative level the rights and powers to temporarily deprive persons of the right to use and/or dispose of assets that may be seized, including for the purpose of confiscation and/or recovery to the state.

Recently, the agency presented in Brussels the developed changes that affect the international fulfillment of obligations. The European partners are responding positively to the proposed changes, which ultimately result in a clear definition of those responsible for international legal assistance, legalization of Ukrainian court decisions and actions of Ukrainian authorities to return criminal assets to Ukraine. Amendments to Article 545 of the CPC of Ukraine - it is proposed to designate ARMA as the body entitled to apply to a foreign jurisdiction for legalization of a Ukrainian court decision, only the one that transferred the seized asset to the agency for sale abroad. And I will not restrain myself in the issue of the expediency of improving systemic interaction between the agencies. After all, how can we talk about unity when ARMA has applied dozens of times to the Prosecutor General's Office with requests to start legalizing a national court decision abroad and in six months we have received neither motivated returned documents nor the start of the procedure itself. This means that there is a need to strengthen coordination of this area in the Prosecutor General's Office and the need for unity of action among the authorities.

Other draft laws, the provisions of which can be combined and included in a single balanced draft law according to the Facility plan in order to address the issue comprehensively and increase the institutional capacity of the agency:

the provisions of the draft law (reg. No. 11473 of 12.08.2024) relate to pre-seizure planning (when preparing a petition to the court for the seizure and transfer of property to management, preliminary consultations and explanations should be provided as to which court decision will ensure the effective management and storage of seized assets. Over the past year and a half, we have been able to work out algorithms for such actions with law enforcement agencies in a working manner, but this should be enshrined in law.
the provisions of the draft law (reg. No. 10390 of January 5, 2024) on improving the competitive selection of asset managers in accordance with the law on public procurement. This is one of the most pressing issues, the solution of which will strengthen the institutional capacity and reduce the time for selecting asset managers.
provisions of the draft law (reg. No. 10451 of 31.01.2024) on strengthening the responsibility of ARMA employees;
provisions of the draft law (reg. No. 11397 of 08.07.2024) on public control and empowerment of the Public Council,
provisions of other draft laws on: strengthening operational capacities for identifying and tracing assets; delineation of the peculiarities of ARMA's title to property (reg. No. 12389 of 08.01.2025); procedures for initiating, reviewing and adopting court decisions on the possibility of realizing an asset, as well as appealing them (reg. No. 12387 of 08.01.2025).

But most importantly, all these changes are essential not only for the agency, but for the performance of the entire law enforcement and anti-corruption system and the state as a whole. ARMA is an anti-corruption body in the legal system with universal capabilities that already demonstrate its effectiveness. We must remember that the initiation of a criminal case is only the first stage, and society and the state expect decisions, sentences, legal and economic liability for criminals. The agency itself, having found criminal assets, already has enough information, ensuring confidentiality and secrecy of the investigation, to bring efficiency to the state after receiving a court decision.

I have mentioned some specific aspects, but I have to summarize the tasks, especially the legislative ones, that I and my team face. If I do not do this now, the history of development may go in the wrong direction. And right now I will speak tough. Only my team and I have known for a year and a half what it means to make changes in a body that was intended to be eliminated as corrupt and to restore trust in it, in the absence of assistance, booking for specialists (who have confidential information and work with wanted persons or billions of dollars in assets), lack of decent salaries, constant criticism, disbelief and opposition, ordered materials from asset owners and those fighting for them, risks in decision-making to save billions for the state. Now, when it comes to the implementation of the EU's Ukraine Facility, a number of draft laws on the transformation of ARMA have already been registered. So, this is an opportunity for MPs to become immediately relevant and public, almost revolutionaries who will “make these changes” at the forefront of such necessary assistance decisions. But in a year and a half, they have not voted for any of the 12 bills submitted by the Agency. I will continue to publicly defend the position of supporting amendments to the law within the Facility.plan, because I am not only familiar with the subject, but in December 2024 the agency submitted even tougher proposals to the Ministry of Justice than those proposed by European partners. But the principled position will remain with regard to the key point - ARMA has already been transformed and is an example for other authorities. And our society must know and believe that Ukraine has professional, motivated for change, honest civil servants who have already demonstrated how to work for the state and for the people. And those who have received international technical assistance in recent years, in particular from the United States, to fight corruption, including in ARMA, and have done nothing but make statements about the feasibility of reforms, should at least think about it and prepare reports. Because the decisions of the newly elected US President Donald Trump are lightning fast and fair.

Does the Agency as a whole, and you as its head, have enough powers to solve problems and operate effectively?

ARMA is a universal body. Therefore, the correct answer here is not whether additional powers are needed, but whether the existing ones work. There is no reason to give a government agency with a special status additional law enforcement powers. Globally, this is because ARMA is not a law enforcement agency, but an anti-corruption body of the second operational level alongside National Anticorruption Bureau of Ukraine, National Agency for Corruption Prevention, Economic Security Bureau and State Bureau of Investigations. There should be a check and balance factor in the state, officials and authorized persons should understand the extent of their responsibility, especially when they receive information, the disclosure of which may harm either the pre-trial investigation or the public interest. Imagine, for example, a situation where an authorized person from the investigation department, having received information about assets, let's say, warns the owner. This will mean that a suspect in a criminal offense will have the opportunity to alienate such assets, export them, re-register them as soon as possible. Yes, this will be detected without question, but at the same time, it will create conditions to make it impossible to seize them immediately. Or, in a different situation, if an ARMA official hid information about the assets found or traced and did not provide it upon request. This would also be detected and have legal consequences for such an official. But the fact remains that our work results are based on integrity, responsibility, integrity and exclusively in compliance with criminal law and civil service, and bring results to the entire legal system, and globally to the country.

Therefore, it is inappropriate and risky to talk, for example, about vesting us with law enforcement functions. The system is built on the principles and standards of the European Union and is balanced in accordance with the directives and decisions of the EU Council. Vesting such a body with law enforcement functions would mean creating a “monster” and a “monopolized punisher” that could, for example, open proceedings, enter data into the Unified Register of Pre-Trial Investigations, find assets, apply for seizure and manage them. Although, in some EU countries, bodies similar to the agency with the authority to initiate criminal proceedings exist.

For Ukraine, now, especially during the war, it is necessary to focus on making the existing system work. Taking into account the existing gaps, the agency proposed to introduce those spot projects that would fill the existing holes.

For example, the law requires ARMA to preserve assets. I would like to point out that the state budget has not provided funds for such storage for all the years of the agency's operation. And when we observe the criticism of anti-corruption NGOs on this issue, I, for one, have a question for these well-known anti-corruption bodies. After all, for all the years of the agency's activity and before my appointment, they did not initiate or change this situation. At the same time, professional lawyers and analysts have already collected materials that document that these organizations received international technical assistance in international projects. I do not know what changes they reported. But given the fact that we also analyze news, articles, and various shadow reports, in which information about the agency's work is covered not even on the basis of the answers received and selectively, without engaging in joint work even at the agency's invitation, it shows one thing: a tireless desire to see a loyal and controlled leader. I would like to reinforce this position by the fact that ARMA's transparency has been noted since July 2023, and without any assistance from the International Technical Assistance.

This recognition is evidenced by:

ARMA's inclusion in November 2023 in the European Network of Anti-Corruption Authorities in Dublin (Ireland), which was voted for by all European member states after my report on the open Register and the approval of new transparent competition procedures.
ARMA's inclusion in the Supervisory Board of the BAMIN (Balkan Anti-Money Laundering Network) and extension of this mandate for a year this year
participation in an international UN conference in Atlanta (USA), where the strategy for the development and tracing of assets around the world was presented
obtaining additional Interpol-24/7 capabilities, along with the existing search capabilities through Europol, CARIN and other networks
inclusion in the capabilities of the “OSCAR financial operation” (The Hague)
Stable cooperation with the EU Advisory Mission and obtaining opportunities for additional search capabilities and training
conclusion of seven international agreements with other similar agencies from such countries as: Malta, Kazakhstan, Romania, Moldova, Poland, Albania, Libya. We are currently awaiting domestic approval procedures for signing agreements with Albania, Bulgaria and Macedonia. We are working on drafting agreements with 20 major countries, including the United States, the United Kingdom, France, Ireland, Sweden, Switzerland, Monaco, the Netherlands, and others. These agreements are already becoming part of the country's security agreements, as they establish cooperation in asset tracing and recovery.

Another example is participation in the implementation of the state's sanctions policy. Thus, one of the important aspects is the agency's search for sanctioned assets at the request of the Ministry of Justice and TASK Force-UA. Therefore, having processed the requests, ARMA has all the information about the identified assets both inside and outside the country. At the same time, when ARMA receives a request for a single sanctioned person, it sees assets that have been re-registered, hidden, or transferred to close/affiliated persons. Therefore, initiating the issue of the possibility for the agency to provide such information directly to the National Security and Defense Council of Ukraine will shorten the timeframe for such information to be processed before the issue of including such persons in the sanctions lists is raised. The second and more effective way for the state is to amend the Law on Sanctions, in particular Article 5-1. This means that if there is corruption in the agency until 2023, the agency is deprived of the right to sell sanctioned assets. Today, the law monopolizes this power exclusively for the State Property Fund. However, the rule does not work. Over the three years of the large-scale war, with more than 43 decisions of the High Anti-Corruption Court on the nationalization of sanctioned assets, only a few have been enforced. The collapse of the system is obvious, as the assets are often duplicated in criminal proceedings, are material evidence and have already been transferred to the agency's management. The example of the sanctioned enterprise “ Ushastyi Nian”, which immediately became the object of control and after inspections for previous periods began to give from the management not 240 thousand UAH per month but up to 8 million UAH per month. The department brought almost a hundred million UAH to the budget. After the High Anti-Corruption Court decision on nationalization, the State Property Fund was supposed to implement it. In practice, what we got was the suspension of the contract and the fulfillment of its terms, the state lost money from the management, and the State Property Fund should have received this asset and attention - to carry out the inspection, selection of an appraiser, evaluation and eventual sale on Prozorro.Sale. Can the state really allow such a duplication of functions and double costs?

This is the first point of the “Unity” that our country needs so badly. We should not be in a position to hold on to powers for the sake of its own status as a body. Reporting to the specialized committee on Anti-Corruption Policy of the Parliament, she emphasized that the more bodies have the right to sell sanctioned assets under competitive and transparent rules simultaneously, the more funds the budget and the War Relief Fund will receive, the Armed Forces, and repelling the enemy. It was for this asset that the State Property Fund received a written confirmation from the State Property Fund that it is impossible to sell it. And it is examples like these that are proof that ARMA is able to ensure a continuous chain of revenues to the budget, without stopping production, paying local taxes or losing employees losing their jobs, until the High Anti-Corruption Court decision on its nationalization decision. Therefore, draft law 10069 remains relevant and the agency should receive these powers (to sell the sanctioned assets that are already in assets already under its management) for the sake of the state's interests.

The resonance of this topic is reinforced by the following facts. the following facts. Over the past year, the agency has written off UAH 1.8 billion of the Russian Royalpay, USD 18 million of Friedman and Aven, and UAH 2.6 billion of PinUp. I will not I will not detail how hard the agency fought and managed to do this, but I will focus on the result. These are examples of sanctioned monetary assets. Due to the principle of non-refundability, even if a court decision to lift the seizure of the Russian funds, ARMA has invested them in military bonds. They are already in the budget and working for the defense forces. So, the issue of timeliness of decisions is the first. After all, the Ministry of of Justice filed a claim for their nationalization only after they were written off by the agency, and the High Anti-Corruption Court 's decision was received after they were allocated to military bonds. It is doubtful whether the decision to take away funds that are already working for defense, I doubt it. Therefore, the law on sanctions should be changed, and High Anti-Corruption Court decisions should take into account the work done by the agency with results for the the state.

Working at the request of law enforcement agencies, the agency identifies and traces assets within the framework of criminal cases and provides all information for their further seizure and transfer to the agency, including abroad. In 2024, our successful change was that the Agency signed a joint order with the National Agency for Corruption Prevention and now we are successfully processing requests for the identification of unjustified assets. The dynamics of investigative activities is also interesting. For example, in 2023, we processed more than 13,000 requests from pre-trial investigation authorities, and found 96,000 assets. In 2024, given the fact that the number of requests for sanctioned assets decreased (there were more of them with the outbreak of a large-scale war), the following analysis shows that with almost 8 thousand requests per year, 146 thousand assets were identified and traced. Thus, the efficiency of asset tracing has increased by one and a half times. At the same time, for the first time in 8 years of our activity, we have announced not only the number of assets found and traced abroad, including those transferred to the Agency pursuant to court decisions, but also their estimated value, and when faced with problems, we publicly say what needs to be changed to achieve better results.

In conclusion, regarding the expediency of additional powers, I would like to emphasize that every experienced official in our country knows how to avoid doing something, emphasizing the lack of powers provided for by law. And we have shown when the absence of functions in the law is not an obstacle. Often the agency faces problematic issues that affect the fate and existence of a domestic enterprise in general. For example, when selecting a manager for the Ovruch quarry, we faced the following problems: debts for electricity due to flooding of the quarry, the possibility of failure of the main pump and equipment, wage arrears to employees, and in general - the fate of those people (the population of the district) who have been genetically dependent on the work of the quarry for years. And we did it, comprehensively and systematically, even though it is not ARMA's direct authority. But from now on, the company, which has a license to mine the most valuable red granite in Ukraine until 2036, will survive. It is not about the economic effect now, or the exorbitant amounts of money to the budget, it is about the preservation and restoration of Ukrainian enterprises.

I can give you another example when you have the authority but no result. Very briefly about the expediency of obtaining seized funds, which are recognized as unjustified assets. As an example, the seized funds of the Medicinal Investigation Commission amount to millions of dollars. I speak about this publicly, I officially appeal to the Specialized Anti-Corruption Prosecutor's Office, the High Anti-Corruption Court, even to the Supreme Court for clarification. And I receive a response that the regulatory part is indeed sufficient for the pre-trial investigation body to submit a corresponding petition to the High Anti-Corruption Court to make a decision to transfer such funds to the agency. After all, these millions can already work for the Armed Forces, and not just lie in safes as material evidence. We expect balanced and fair decisions in this matter as well, as the Specialized Anti-Corruption Prosecutor's Office and the Higher Anti-Corruption Court have received our appeals.

You are the author of the Anti-Corruption Plan for Ukraine, including in the social, agricultural, land and environmental sectors. What does it consist of and is it already being implemented?

Yes. The Anti-Corruption Plan was developed in 2017. My legal education, experience and career in the civil service for 24 years in various government agencies and lawmaking made it possible to see the problems in a comprehensive manner.

Here are the results:

We managed to unify the experience of European countries (Sweden, Norway, Lithuania, Latvia) and create the State Register of Real Property Rights (and transfer information from the old Bureau of Technical Inventory) by creating a mutual exchange with other state registers. This task was integrated by me as Deputy Director of the Department of the State Registration Service (Ministry of Justice) for the creation of the State Register of Real Rights. I was a co-author of the law on state registration of real rights to real estate. And having 8 years of experience in the Ministry of Ecology and Natural Resources of Ukraine and being a member of the Board of the State Land Agency, we successfully integrated information on acts and certificates of ownership of land plots. It was also a successful rulemaking work at the level of development and approval of government resolutions on information exchange and data transfer between the State Land Cadastre and the State Agency for Land Resources.

We managed to create and approve the Pollutant Release and Transfer Register for Ukraine and ratify the relevant Protocol on the Pollutant Release and Transfer Register by the law of Ukraine. The adoption of the law in Ukraine was preceded by my presentation in Madrid (Spain) of the strategy for the development of environmental policy and the feasibility of creating a relevant Register with integration into the European system. Today, the Register of Pollutant Emissions and Transfers is widely used to record environmental crimes and war crimes damage.

We managed to eradicate corruption schemes in the social sector at the Social Insurance Fund. As a result of the systemic anti-corruption policy implemented by the Director of the Fund, corruption offenses in the working bodies of the Fund were exposed and stopped, a number of applications were submitted to law enforcement agencies, including the National Agency for Corruption Prevention, the State Bureau of Investigation, the Prosecutor General's Office, the Security Service of Ukraine, the National Anti-Corruption Bureau, the National Police, and a number of officials (four deputy directors of the Fund and heads of territorial departments) were dismissed, with subsequent registration of corruption offenses in the Unified Register of Pre-trial Investigations.

Also, criminal proceedings were initiated regarding the illegal withdrawal of 71 state-owned objects by officials of the State Property Fund and the exposed scheme of payments for disability at work, which was paid by the Fund in the amount of a monthly salary to an employee for life (similar crimes were detected by the Medical Social Expert Commission in 2024).

As a result of the high-profile cases, the Fund was liquidated as a corrupt body by the law of Ukraine, and its powers were transferred to the Pension Fund of Ukraine.

We also managed to launch the creation of the Electronic Sick Leave Register. http://www.fssu.gov.ua/fse/control/kievobl/uk/publish/article/111123

Subsequently, the Protocol of Information Exchange was signed with the Pension Fund and the Ministry of Health. The Register is now successfully operating. The motivation for creating the Register was to fully automate the processes and eradicate the corrupt scheme of payments on fake paper sick leave certificates, including those issued by health resort facilities (which were extended for the reasons of rehabilitation). The scheme, which was stopped, allowed for illegal payments of more than UAH 5 billion per year to sanatoriums under the control of the Federal Union of Healthcare Workers and for illegal enrichment. As of today, these sanatorium facilities have been arrested, transferred to the management of ARMA and initiated the transfer for the rehabilitation of our servicemen.

This experience was successful for the state and at the same time the most resonant for my own reputation, as I had to defend my rights for the unlawful dismissal by the Fund's Board in the Supreme Court of Ukraine as a person who reported corruption crimes, which resulted in a decision in my favor.

These are not all examples, because the points of the anti-corruption plan are being implemented even in ARMA. When faced with court decisions that affect the interests of the state, I cannot stand aside and go all the way, using all possible measures. An example is the case of gas production from the Sakhalin field. ARMA used the experience gained in drafting the oil and gas law and the procedures for issuing special subsoil permits. Thus, on July 12, 2023, I signed an agreement on the management of a special permit for gas production at the Sakhalin field, under which 90% of the profits should be received by the state. In December 2023, we received a decision from the Pechersk District Court to cancel the special permit. After 8 months of fighting in courts, involving ARMA as a third party in the case, and filing a cassation appeal, ARMA won, and thus the state. But the main thing is to ensure payment of UAH 748 million to the state budget for 6 months of production and at the same time budget losses of UAH 3 billion (before the suspension of production based on a court decision), which was reported to the law enforcement agency and a criminal case was initiated.

The Cabinet of Ministers of Ukraine, by its Resolution dated August 13, 2024. No. 759-р approved the action plan for the implementation of the Asset Recovery Strategy for 2024-2025. What is this document? Which of the measures have already been implemented? What is planned for this year?

For the first time in all the years of the agency's activity, the Asset Recovery Strategy for 2023-2025 was developed and approved (Government Order of August 01, 2023). The Strategy was developed by ARMA to implement international recommendations, in particular those contained in:

- The European Commission's Fourth Report on the Suspension Mechanism for the Visa Waiver Regime;

- The European Commission's Opinion on granting Ukraine the status of an EU candidate.

The Strategy determines the course of state policy on the introduction of a comprehensive model of asset recovery in Ukraine by: planning the system of asset recovery in Ukraine; payment of compensation or damage caused to Ukraine as a result of crimes and compensation for losses caused to Ukraine as a result of the armed aggression of the Russian Federation.

We have done a lot of work with 22 other state authorities, including the law enforcement agencies, and approved the Action Plan. For Ukraine, this means that there is an agreed roadmap for strengthening cooperation between law enforcement and other government agencies, banking institutions, the public, the private sector and international partners, and provides for the development of dozens of legislative initiatives designed to strengthen the tracing and management of seized assets in Ukraine and bring it closer to the best international standards. The staff of the Interagency Working Group has already been approved.

Clauses 6 and 7 of the Strategy on strengthening international cooperation have already been implemented. In particular, the Government Resolution No. 1116 of 26.09.2024 was adopted, in connection with which ARMA was added to the list of co-executors of the obligations of the Hague Conference on Private International Law;

the Egmont Group of Financial Intelligence Units; the Council of Europe Committee of Experts on the Fight against Terrorism; the United Nations Office on Drugs and Crime; the Conference of the Parties to the United Nations Convention against Transnational Organized Crime; the Eurasian Group on Combating Money Laundering and the Financing of Terrorism; the Council of Europe Group of States against Corruption (GRECO); the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering and Counter-Terrorist Financing Measures (MONEYVAL).

Such international cooperation will facilitate intelligence sharing and the prevention of money laundering and terrorist financing, asset recovery, and the detection of financial crimes.

To this end, the Agency has already developed a draft law that provides for access to additional sources of information necessary for the effective identification and tracing of assets. By the way, amending the Criminal Procedure Code of Ukraine to provide the Agency with international legal assistance is also a point of the Strategy. This is one of the most realistic ways to return to Ukraine the property that has been transferred abroad.

How and on what basis does ARMA ensure international cooperation in the field of asset recovery and tracing? Which countries does it cooperate with and what are the results of such cooperation?

According to the principles of international cooperation set out in Article 18 of the Law - reciprocity or on its own initiative.

ARMA cooperates with 88 countries and 54 international institutions. In addition, it cooperates with foreign jurisdictions through the following networks:

CARIN (Camden Asset Recovery Interagency Network);
Interpol (International Criminal Police Organization)

Europol (European Police Office);

and the seven Asset Recovery Inter-Agency Networks (ARIN-WA); (ARIN-WСA); (ARIN-AP), (ARIN-AP); (ARIN-AP); (ARINSA); (ARIN-EA), (ARIN-CARIB) and the Platform of EU Member States Asset Recovery Offices.

It is worth noting that the Camden Asset Recovery Interagency Network (CARIN) in its annual report for 2023 noted Ukraine as one of the most active participants in international cooperation in 2023. Out of 436 requests for asset tracing sent by Ukraine to CARIN, 215 were sent by ARMA. In their report, CARIN experts attribute such activity on the part of Ukraine to the importance of asset recovery during the war. In addition, in 2023, Switzerland, the United States, Ukraine and the United Kingdom received the largest number of requests from CARIN members for asset identification and tracing. Out of 138 requests to Ukraine, 106 were sent to ARMA, which demonstrates the high level of trust of international partners in the agency.

On November 20-22, 2024, ARMA delegation took part in the 20th CARIN General Assembly in Paris. Work has begun with representatives of the Irish Criminal Asset Recovery Bureau, the Libyan Asset Recovery and Management Office (LARMO), the Austrian Criminal Intelligence Service, the Italian Financial Guardian Asset Recovery Office (GDF), the UK National Crime Agency (NCA), the US Marshals Service (USMS), as well as similar bodies in Latvia, Poland, Monaco and Jersey. Agreements were reached to deepen cooperation in the field of asset identification and tracing with a representative of the Cyprus Police and a representative of the ARIN-CARIB Secretariat, Kisha Southerland. Monaco is also ready to sign an international agreement with ARMA, which was confirmed by Police Captain Pierre-Greguerard Quif. In addition, agreements were reached to deepen cooperation in the field of asset identification and tracing with a representative of the Cyprus Police and a representative of the ARIN-CARIB Secretariat, Kisha Southerland.

This is a driving force for identifying and tracing criminal assets abroad and signing international agreements.

In addition to CARIN, the inter-agency networks ARIN, EUROPOL and INTERPOL, in August 2024, ARMA launched cooperation with representatives of the International Anti-Corruption Coordination Center (IACCC). As a result of this meeting with IACCC representatives, ARMA was able to send requests to the Center to identify and trace the assets of persons suspected of grand corruption.

In total, in 2024, the number of requests sent by ARMA to the competent authorities of foreign jurisdictions amounted to 383 requests. For comparison, in 2023 ARMA sent 215 requests, and in 2022 - 171. This growth, starting in the second half of 2023, is due to the development of international cooperation of the National Agency, signed international agreements.

And we are increasing these figures. For example, according to a recent joint order with the National Agency for Corruption Prevention on the search for unjustified assets, as of January 16, 2025, within the framework of criminal proceedings (opened under various articles of the Criminal Code), requests from the Ministry of Justice of Ukraine (regarding sanctioned persons) and the National Agency for Corruption Prevention (regarding unjustified assets), ARMA sent 1483 requests to the competent authorities of 88 foreign jurisdictions and international organizations.

In just 4 months of cooperation, ARMA has traced assets worth over USD 4 million at the request of the National Agency for Corruption Prevention. In particular, the persons involved in the National Agency for Corruption Prevention cases purchased luxury apartments in Miami (USA), apartments in Batumi (Georgia) and Prague (Czech Republic), real estate in a Hungarian spa resort and on the Black Sea coast in Bulgaria. In addition, the assets found include a luxury car Porsche Cayenne 2024 with an estimated value of USD 77 thousand, as well as more than EUR 400 thousand on a bank account in Moldova.

The discovered property is a vivid example of the effectiveness of the new procedure of cooperation between the two authorities, which provides for close cooperation in the search and detection of unjustified assets.

The largest number of requests are sent through the EUROPOL network. ARMA is a member of Operation OSCAR at EUROPOL headquarters in The Hague (Netherlands). Operation OSCAR involves 40 countries, as well as Eurojust and Frontex. Participation in this operation allows ARMA specialists to send requests to the competent foreign authorities of the participating countries to identify and trace the assets of sanctioned persons and their associates within the framework of cooperation between ARMA and the Ministry of Justice of Ukraine, as well as to law enforcement agencies where a sanctioned person is a subject of criminal proceedings.

As of the end of 2024, ARMA has sent 76 requests to 29 project countries and has already achieved results. In particular, ARMA has provided law enforcement agencies and the Ministry of Justice of Ukraine with data on the assets held by the sanctioned persons and their associates in foreign countries, namely 9 real estate objects (worth more than EUR 40 million), shares in the authorized capital of companies totaling about EUR 30 thousand, and information on citizenship, border crossing data and company registration data has been received from a number of foreign jurisdictions.

On February 21, 2025, at the annual meeting of the Operation Oscar participants, ARMA will present a report on the results of 2024. I would like to briefly note that ARMA's presentation is already on the agenda of this meeting and includes a report on the following assets:

luxury yachts
land plots in a country park in London, worth £1.6 million each
an elite house in London for 27 million pounds sterling;
apartments in one of the most famous ski resorts in Montenegro;
an elite property in the center of Paris worth EUR 0.9 million;
a townhouse worth EUR 26 million and a chalet with a parking space worth EUR 9.7 million in France;
a painting worth USD 23 million and a sculpture by a world-renowned British sculptor worth USD 33 million.
and even an 18th-century chateau residence near Versailles worth EUR 2 million.

It is worth noting that in most cases, the National Agency receives detailed information on the location of the asset, its composition, estimated value, date of acquisition, and other useful information. New opportunities from the State Space Agency have become a special vector for the development of asset tracking. The signed cooperation agreement enables ARMA to receive up-to-date images, including retrospective images, via satellites as soon as possible.

In addition to the above, our daily work includes participation in the EUROPOL project called A.S.S.E.T. (Asset Search and Seizure Team). As an example, in just three days of the project, ARMA received information on the following assets of the defendants in the cases:

- funds in a bank account in Montenegro amounting to over EUR 5 million;

- real estate in Estonia and a bank account;

- a car purchased by the defendant in Germany for about USD 45 thousand;

- bank accounts in Latvia, Romania, France and Germany;

- information on border crossings.

Moreover, ARMA is involved in the INTERPOL Silver Notice pilot project, which is a tool that allows obtaining information on criminal proceeds and assets of illegal origin (fraud, corruption, money laundering, etc.).

Thus, ARMA's activities demonstrate significant progress in the field of international cooperation in identifying, tracing and recovering assets. The Agency actively uses international platforms and tools for cooperation, in particular CARIN, interagency networks ARIN, EUROPOL, INTERPOL, and participates in large-scale projects such as Operation Oscar, A.S.S.E.T. and SILVER NOTICE.

The effectiveness of ARMA is confirmed not only by the number of requests submitted, which has increased significantly over the past period, but also by the high praise from international partners. In particular, Ukraine has been recognized within CARIN as one of the most active participants, and the amount of assets found of sanctioned persons and persons involved in criminal proceedings has already reached USD 100 billion.

Working relations with Ambassadors and representatives of all embassies are important steps towards strengthening international partnership and creating conditions for supporting ARMA's activities in the international arena. I am proud of the achievements in the European integration direction, which is headed by the highly respected Ambassador Grigol Katamadze. It was his diplomatic and professional experience that gave impetus to the development of international relations. In 2024, meetings were held with diplomats and officials from the following countries: Malta, Slovakia, Czech Republic, Lithuania, Croatia, Italy, Estonia, Denmark, Romania, Poland, Spain, Israel, Azerbaijan, Turkey, Belgium, France, Korea, and the United Kingdom.

And meetings with representatives of the OECD, KOICA, the US-Ukraine Business Council (USUBC), DELOITTE, as well as the Directorate of the Central Anti-Corruption Bureau of Poland (CBA) and other international organizations gave impetus to changes and rules in the Ukrainian market. As an example, a success is the establishment of equal opportunities for foreign entities along with Ukrainian ones to participate in tenders for the management of seized assets. Previously, there was an obligation to register official representative offices as a condition of the tender, which leveled the participation itself. Such registration would require time, funding, staffing, and fulfillment of these requirements does not ensure victory. Therefore, from now on, such a need arises only if a foreign person wins the tender and enters into an agreement with the agency to make payments to the budget.

What is the mechanism of asset recovery in the national and international spheres?

What are the current results of ARMA's efforts to return illegally transferred assets to Ukraine?

In general, such a mechanism is a set of regulatory and administrative instruments of the state through international cooperation with foreign authorities, including the conclusion of interagency international agreements and the conclusion of international agreements on the distribution and return of assets to Ukraine.

I must emphasize that it is necessary to clearly distinguish between the return of assets from abroad that have been seized in criminal proceedings in Ukraine and those that are sanctioned and are held as funds in foreign bank accounts, as corporate rights, movable or immovable property.

In both cases, the role of ARMA cannot be overstated. I will focus on the agency's direct competence and what has already been done. After all, there should be only one result - the transfer of funds to the State Budget of Ukraine on the basis of international agreements on the distribution and return of assets to Ukraine, or from the sale of seized assets found by the agency abroad.

Let me give you a few different examples. The most famous and high-profile asset seized abroad is the yacht of the traitor Medvedchuk, the Royal Romance. In fact, this is an example that reveals the imbalance and gaps in the national law enforcement system and, at the same time, a breakthrough by the agency that impressed the international community.

The vessel, purchased for €200 million in 2015 with the blood of Ukrainians after the Maidan events, was arrested in one of four criminal proceedings and transferred to the agency for sale. It should be noted that this Ukrainian decision of the Lychakiv District Court of Lviv dated 16.03.2022 was legalized by the court of the Republic of Croatia and survived the appeal after being challenged by Medvedchuk's lawyers.

The procedure for legalization of the decision is regulated by Article 545 of the CPC of Ukraine and is within the powers of the Prosecutor General's Office. Given the difference in Croatian criminal procedure law and the time limit for restrictive measures, the arrest had to be extended at the request of the PGO every three months. So, starting in 2022, no other actions were taken in relation to Medvedchuk's yacht other than extending the arrest period. This became my special task, realizing that the sale of the yacht through a legalized foreign court decision would “open the very window to Europe” and set a precedent for the sale of other withdrawn assets abroad.

So, in July 2023, the agency had no documents regarding the yacht, except for court decisions confirming Croatia's decision to confiscate it and sell it to the agency.

We started to act. First and foremost, there was no procedure for selling abroad. In other words, neither the agency nor any other government agency had developed such a mechanism in the year and a half since the seizure. After analyzing the European practice of applying transparent competitive procedures, we developed and agreed with all agencies and the public the procedure for selling seized assets abroad. Four months later, it was approved by a government resolution and practical work began in November 2023, using the agency's international status. We involved all the interested ministries and agencies of the Republic of Croatia (Ministry of Justice, Ministry of Foreign Affairs, Ministry of Maritime Affairs and Infrastructure, Port Authority, embassies of both countries) in this process. We managed not only to obtain a Croatian court decision to inspect the vessel with independent experts, observe a test drive of the yacht, inspect it, obtain the necessary documents in the case, calculate the actions of Medvedchuk's lawyers on ways to prevent its future sale through alleged memoranda of its donation to a third affiliated person (Mr. Inkin), registration of the flag for the vessel in various countries of offshore zones, but also to take proactive steps. These include: establishing ARMA as the temporary owner of the vessel as a seized asset and recognizing its nationality as Ukraine (flag of Ukraine) in the Register of the Shipping Administration with further application for registration with the International Maritime Organization (IMO, UK), obtaining permission by a protocol order of the Prime Minister of Ukraine and, for the first time in history, announcing a tender to select a Bidder for a seized asset abroad. The success of open and transparent tenders broadcast worldwide resulted in both world-class winners (the Netherlands and the United States) expressing their willingness and providing sufficient guarantees of the possibility of implementing the project and transferring funds to the state budget of Ukraine.

The Chair of the Supervisory Board of BAMIN, Jill Thomas, a global expert on asset confiscation without a court verdict, observing ARMA and this particular case, noted: “You have achieved the impossible for the first time in world history, reaching this stage and obtaining the approval of the country’s Government and the Auction Organizer.”

After failing to receive a copy of the indictment from the Prosecutor General's Office (PGO) as a basis for extending the arrest in Croatia within the framework of criminal proceedings, the arrest was lifted. The issue of properly providing international legal assistance became acute, which is why we immediately initiated changes to the Criminal Procedure Code in this area to take full responsibility and centralize the entire case. This is the only way to act in a coordinated and result-oriented manner. I should add that the ship was blocked by European sanctions to prevent its return to Medvedchuk. As of August 2024, the agency received a new decision transferring the ship to ARMA for sale within a new criminal proceeding against Medvedchuk, conducted by the Main Investigative Department of the Kharkiv Region Security Service of Ukraine. From September 2024 to January 2025, the agency sent numerous requests to the Prosecutor General's Office to initiate the procedure for legalizing the Ukrainian decision in the Republic of Croatia. Once the legalized decision is obtained, a new tender will begin, which will undoubtedly become the first successful global case of returning seized assets to Ukraine.

The agency's work and my daily agenda also include other "international cases," from AN-124 aircraft in Canada and Leipzig, $5 million in Poland, to a castle in Florence.

I must note that each case has unique challenges. For example, in Canada, their own confiscation law (SEMA) was approved, and having received a court decision on management, we developed a roadmap to align procedures and account for the legislation of both countries.

To enforce a Ukrainian court decision in Germany, the agency formed an interdepartmental working group with the participation of a pre-trial investigation body. The need to legalize the national court's decision arises from analyzing the correlation of criminal charges. Thus, it is a kind of international-level planning before the arrest. Results are already in sight, as a draft government directive has been prepared. We are awaiting the Prosecutor General's Office's response to initiate the legalization process.

The return of funds, based on a decision by the Shevchenkivskyi District Court of Kyiv, placed in accounts at a Polish bank, was transferred to ARMA's management. The Republic of Poland may become the first country to facilitate the return of funds withdrawn abroad to Ukraine, marking an important step in combating economic crimes. During a working visit to the Republic of Poland in December 2024, facts of improper international legal assistance from the Prosecutor General's Office were repeatedly identified. We renewed this work. As ARMA initiated legislative amendments allowing the agency to purchase military bonds in foreign currency, the funds in the Polish bank accounts will be directed to the needs of the Ukrainian army.

Another interesting case is the seized property in Marbella, Spain. ARMA is working on the legalization of Ukrainian court decisions in Spain to transfer two real estate objects to management. Spanish courts confirmed the prohibition on asset alienation; however, the final transfer of these properties to ARMA's management has not yet occurred. The agency sent additional requests to the Prosecutor General's Office and Spanish competent authorities to clarify the legal status of the property and ensure the enforcement of Ukrainian court decisions.

As part of this case, ARMA expects the Prosecutor General's Office to submit the necessary requests for international legal assistance to legalize the Ukrainian court decision in the Kingdom of Spain regarding the transfer of seized assets to ARMA's management.

There is enough evidence to draw conclusions when discussing the return of assets worth more than $100 billion. We strive for unity: cooperation with the Prosecutor General's Office requires drastic changes, and much of this will depend on the new Prosecutor General of Ukraine, as they bear personal responsibility for ensuring proper international legal assistance. In the current system of achieving effective change in the country, I believe that unity and systemic reforms are the main issues.

You have been awarded the Order of Princess Olga for your sacrificial love and dedicated work. What advice can you offer, and what would you like to wish Ukrainians?

To believe. Work and believe in your strength and in Ukraine. Inner strength means respecting others' music but dancing to your own. We are a strong nation. We will overcome the enemy and all obstacles.