RISE Ukraine Urges Parliament to Support Draft Law No. 12374-d and a Robust ARMA Reform

The RISE Ukraine Coalition calls on Members of Ukrainian Parliament to urgently support Draft Law No. 12374-d, aimed at a comprehensive reform of the Asset Recovery and Management Agency (ARMA).

This draft law is a critically important step toward ensuring transparent and effective management of seized assets, which directly affects Ukraine’s recovery processes.

Recovery and remediation of the consequences of war require significant financial resources. The Fund for the Elimination of the Consequences of Armed Aggression, intended to be filled through sanctioned assets, has already become one of the key instruments for financing reconstruction. However, the current system for managing seized sanctioned assets creates room for manipulation, in particular due to poorly designed public policy in the area of ensuring confiscation through criminal seizures.

Draft Law No. 12374-d effectively addresses these issues by establishing a clear mechanism for transferring sanctioned assets seized in criminal proceedings to the SPFU, enabling further allocation of funds for recovery.

Draft Law No. 12374-d is the most robust ARMA reform proposal among all those submitted to Parliament. It comprehensively incorporates previously registered legislative initiatives. This draft law:

1. Standardizes asset identification procedures — introduces a clear mechanism for analysis and planning before the transfer of assets into management.
   
2. Improves the system for managing different types of assets — introduces a differentiated approach for simple and complex assets, and establishes clear deadlines for management procedures.
   
3. Increases transparency — expands ARMA’s public reporting obligations and requires the disclosure of more information on the status of assets, income from their management, and the Agency’s performance.
   
4. Unblocks the management of corporate rights of enterprises linked to the aggressor state.
   
5. Regulates the issue of sanctioned assets — clearly establishes that assets seized in criminal proceedings and confiscated under sanctions will be transferred to the SPFU to enforce the relevant decision and contribute to the Fund for the Elimination of the Consequences of Armed Aggression.

The adoption of Draft Law No. 12374-d is an important step toward implementing effective and well-defined asset management mechanisms, as well as ensuring transparent and high-quality oversight of these processes.

Therefore, the RISE Ukraine Coalition urges the Verkhovna Rada of Ukraine to promptly consider and support Draft Law No. 12374-d.