A dispute has emerged between Ukrainian asset recovery authorities and the Patarkatsishvili family, a British-based billionaire clan, over control of IDS Ukraine, a major bottled water producer. The company’s ownership is divided among multiple parties: the Patarkatsishvili family holds 34%, Russian investors including sanctioned oligarch Mikhail Fridman hold 49%, and the Georgian government maintains a minority stake.
Ukrainian authorities froze the company’s corporate holdings in 2022 due to the Russian investors’ involvement, given international sanctions against Fridman for his support of Vladimir Putin’s regime. Ukraine’s asset recovery and management agency, known as Arma, has been tasked with installing independent management to oversee the company’s operations. The agency’s leadership has stated that efforts to implement this transition have faced considerable legal and procedural resistance from shareholders unwilling to relinquish control.
Arma officials have raised concerns about potential money laundering and value extraction under the current management structure, though no formal findings of criminal activity have been made. The agency reported experiencing a cyber-attack during one attempt to identify an independent manager, with responsibility for the incident remaining unclear. The Patarkatsishvili family is not considered a suspect in connection with the cyber-attack.
The Patarkatsishvili family has disputed Arma’s characterization of their conduct, stating that claims of unlawful agency action constitute misinformation. A spokesperson for the family emphasized their non-sanctioned status and the absence of formal allegations against them, adding that they support Ukraine and object to being targeted unfairly. Separate proceedings are underway in Ukraine’s anti-corruption high court, where shareholders are challenging government attempts to nationalize portions of the company, which some officials view as strategically important during the ongoing conflict.
The family has indicated willingness to pursue the matter in international courts if domestic proceedings do not favor their position. Company representatives have stated that IDS Ukraine has maintained continuous operations since Russia’s invasion and has complied with all applicable Ukrainian regulations.
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