ARMA’s Sale of Borzhava Lands: Three Questions About the Process

On January 8, 2026, the Asset Recovery and Management Agency sold 460 hectares of land, as well as the upper and lower stations of a ski lift on the Borzhava mountain meadow, for UAH 89.5 million. The buyers were Ihor Vlasiuk and Andrii Vinhranovskyi, who have been linked to Serhii Liovochkin and Vladyslav Kaskiv. 

Three land plots were sold via a “Dutch auction.” It starts from the opening price, which is gradually reduced until someone is the first to agree to buy the asset at the current price; after that, other participants may offer a higher price through sealed bids. This approach is used when the initial classic “ascending-price” auction fails.

Background of the assets

These lands and real estate are part of a case concerning the embezzlement of funds from the State Agency for Investments and Management of National Projects of Ukraine (State Investment Project). This refers to the theft of more than UAH 259 million from the State Investment Project in 2012–2014, when the agency was headed by Vladyslav Kaskiv. 

The funds were taken by private firms that were allegedly supposed to implement two projects: to install drinking-water vending machines in Ukraine’s largest cities (the Quality Water project) and to prepare infrastructure for a potential Winter Olympics in Ukraine (the Olympic Hope-2022 project). Instead, the money was moved offshore, partially laundered, and “reinvested,” including into the very land plots that have now caused a scandal.

Under a plea agreement approved by a HACC verdict in July 2024, the defendants reimbursed the state for UAH 259 million in damages, and the lands were transferred to ARMA for sale. As early as May 17, 2024, the Agency’s specialists inspected them and announced the sale on Prozorro.Sale platforms.

Three questions about the process

ARMA’s sale of this particularly valuable category of assets has understandably sparked public outrage—both over the price and the buyers. However, this example once again raises important questions. Addressing them will help prevent similar situations in the future. 

1. Was a proper valuation ensured, and were the timeframes for selling the assets appropriate?

ARMA selected companies to run the auctions three times, and the land plots were also valued three times. In the seized-assets register, one of the land plots indicates that Polonex LLC was to organize auctions from November 2024; however, the first and repeat auctions were unsuccessful. The same was true for TENDER ONLINE PE, which attempted to sell these plots from June 2025. A questionable success came only to UKRINVESTENERGOCONSULT LLC, which ultimately sold the asset. 

At the same time, each updated valuation reduced the estimated value. The initial combined valuation of the land plots exceeded UAH 1.067 billion, but by July 2025 the asset was listed for sale at UAH 827.4 million. As ARMA explained in response to our request, the latest valuation was conducted by SVM BUSINESS GROUP LLC at the request of the auction organizer, UKRINVESTENERGOCONSULT LLC, and as of September 26, 2025, amounted to UAH 347.9 million (excluding VAT).

This raises questions about the reasons for the dramatic drop in valuation, as well as whether lessons from the failed prior sales were taken into account in subsequent auctions.

This primarily concerns splitting the land plots into lots, because in every auction iteration the assets were sold in three lots: 

• 245 land plots;
• 208 land plots, as well as the lower station with a chairlift line and the upper station of the ski lift;
• 41 land plots.

In response to a request, ARMA explained that the lots were formed based on a letter from the Specialized Anti-Corruption Prosecutor’s Office dated July 25, 2024. The proposed lots were structured so that, considering the adjacency of the lands and their size, each lot would be maximally commercially attractive and the time needed to receive proceeds from the sale would be minimal.

However, the number of failed auctions shows that buyer interest was still insufficient. And regardless of requests and suggestions from other participants in the process, ARMA bears responsibility for splitting the asset into lots.

2. Were safeguards in place to prevent related parties from buying the assets?

Media reports have suggested that lands seized in the Kaskiv case, purchased with money stolen from the state, have effectively returned to the same people.

Approaches to banning prior owners of criminal assets from “buying them back” from the state after confiscation differ. A new FATF guide on recovering assets obtained through crime notes that allowing criminals to regain their assets through auctions, even at market price, may undermine confiscation goals (such as deterrence) and damage the reputation of authorities. Some states conduct relevant checks on buyers. 

This is stated more directly in paragraph 40 of the Preamble to EU Directive 2024/1260 of April 24, 2024, which provides that the state should take measures to prevent assets from returning into the ownership of convicted persons or persons associated with them.

The HACC verdict approving the agreement in the case involving these land plots states that the criminal proceedings contain no information indicating that the founders and/or directors of the companies owning the land plots (i.e., Borzhava Development LLC, Borzhava Invest LLC, Borzhava Land LLC, Dumka LLC, Taurus Invest LLC, Taurus Property LLC, Taurus Land LLC) knew that the lands had been acquired through criminal means. However, the defendants in the case secured these companies’ consent for proceeds from ARMA’s sale of these lands to be transferred to a special National Bank account for collecting funds in support of Ukraine’s Armed Forces.

According to YouControl, the buyer of the land plots, Ihor Vlasiuk, is a co-founder of Borzhava Asset LLC, whose ultimate beneficial owners are Andrii Vinhranovskyi (the buyer of the other two lots) and Renata Huseinova. Even from these public data, it is clear that Borzhava Asset LLC has connections with the companies that are the formal owners of the lands—Borzhava Development LLC, Borzhava Invest LLC, Borzhava Land LLC, Dumka LLC, Taurus Invest LLC, Taurus Property LLC, Taurus Land LLC.

It is important to emphasize that the updated ARMA law includes provisions prohibiting persons associated with an owner, suspect, or defendant from managing assets. The Agency is currently developing secondary legislation to implement the new law, including these provisions. Those acts should clearly define the same ban for cases of asset sales as well—so that property does not, through negligence or oversight, return to former owners.

3. Has environmentally responsible stewardship of sites with ecological value been ensured?

The Borzhava mountain meadow has special ecological and recreational value. Despite this, in July 2025 ARMA indicated that land plots in this area have development potential—specifically, that the designated purpose of these lands allows their use for tourism, recreation, and residential development.

At the same time, a Bihus.Info investigation mentioned that Serhii Liovochkin plans to build a ski resort called “Borzhava” in this area. The sold assets also include the upper and lower stations of the ski lift.

This raises the question of whether mechanisms are in place to ensure environmentally responsible use of such sites after their sale.

What comes next?

According to information published by the head of the Verkhovna Rada’s Anti-Corruption Committee, ARMA may still cancel the result of these auctions.

It should be understood that the key decisions regarding this sale were made back in May–June 2024—before ARMA’s reform and the change in the agency’s leadership. However, now that the rules have changed, the example of assets “returning” to people close to Kaskiv and Liovochkin has become a painful irritant for society. 

Therefore, both the Agency and lawmakers need to study this case in detail and use it to further improve the process for selling seized assets, and to develop solutions that make it impossible for similar situations to recur.