IDS Ukraine faces ownership dispute involving Patarkatsishvili family and Russian investors

A legal and political dispute has emerged in Ukraine regarding the ownership of IDS Ukraine, the country’s largest producer of bottled mineral water. The conflict involves the Patarkatsishvili family, a British billionaire family that holds approximately 34 percent of the company, and the Ukrainian government.

The dispute is driven by the presence of sanctioned Russian investors. Approximately 49 percent of IDS Ukraine is owned by Russian entities, including Mikhail Fridman, the founder of Alfa Group, who is under Western sanctions due to the war in Ukraine. Consequently, Ukrainian authorities froze company assets in 2022.

The Asset Recovery and Management Agency (ARMA) has been tasked with appointing independent management to the company to prevent sanctioned owners from benefiting and to mitigate risks of money laundering or capital flight. However, ARMA officials report facing legal hurdles, bureaucratic resistance from shareholders, and cyberattacks during their attempts to install new leadership. The Patarkatsishvili family, through the New World Value Fund Limited, has denied allegations of wrongdoing, which ARMA officials have characterized as disinformation.