The British owners of Morshynska opposed the seizure of their shares
A family of British shareholders in IDS Ukraine, which owns more than 34% of the company, has stated its readiness to take the matter to international courts if the Ukrainian government seizes their stake. The dispute arose over ARMA’s attempts to transfer corporate rights in IDS Ukraine to its administration and subsequent proceedings regarding the company’s possible nationalization.
The dispute surrounding IDS Ukraine, which produces “Morshynska” and other popular brands of drinking water, may extend beyond Ukrainian courts. The family of the late Georgian businessman Badri Patarkatsishvili, who holds British citizenship and owns 34.83% of IDS Ukraine’s shares, has stated that it is prepared to take the case to international courts if it cannot protect its rights in Ukraine.
This concerns the company’s corporate rights, which the Ukrainian government seized back in 2022. The reason was that IDS Ukraine’s shareholders include Russian investors, notably Mikhail Fridman, who is subject to sanctions. Following the seizure, the corporate rights were transferred to the ARMA for management. The agency is currently trying to find an independent administrator for the company.
Why the Dispute Arose
IDS Ukraine has a complex ownership structure. According to the company itself, the Patarkatsishvili family owns 34.83%, the Georgian government owns 7.73%, and minority shareholders own another 7.45%. Mikhail Fridman’s indirect stake amounts to 18.23%. The company emphasizes that shareholders with Russian citizenship who are subject to sanctions have been removed from management and do not have access to IDS Ukraine’s revenues.
The British Patarkatsishvili family also states that it has no connection to the Russian shareholders and opposes the seizure of its stake. “The Patarkatsishvili family firmly believes that assets cannot be taken away from shareholders who are not subject to sanctions and against whom there are no allegations or claims,” family representatives told The Guardian. According to the family, it has supported Ukraine since the start of Russia’s full-scale invasion.
The family is prepared to take the case to international courts
Representatives of the Patarkatsishvili family stated that they are currently defending their rights in Ukrainian courts and before government agencies. However, if this approach proves unsuccessful and the state ultimately seizes the asset through the ARMA procedure, the family plans to take the matter to international courts. “If the Patarkatsishvili family is unable to obtain justice in Ukrainian courts, and the asset is ultimately seized through the ARMA procedure, it will have no choice but to seek justice in international courts,” the shareholders’ representatives stated.
Thus, the potential conflict could escalate into a multimillion-dollar international dispute. At the same time, it is important to note that, at this stage, the discussion centers specifically on the shareholders’ position and the possibility of a future lawsuit. International arbitration in this case has not yet begun.
What ARMA Says
ARMA explains its actions as necessary to ensure the preservation of the asset and prevent the loss of its economic value. The agency’s director, Yaroslava Maksymenko, stated that legal and bureaucratic problems arose during attempts to find an independent administrator. According to her, these were partly due to the shareholders’ reluctance to relinquish control over the assets.
ARMA also expressed concerns about possible money laundering or the siphoning of assets from IDS Ukraine if the company remained under its current management. At the same time, The Guardian notes an important detail: there are no official findings regarding such criminal activity. An investigation into allegations of possible misconduct by ARMA officials is also ongoing.
IDS Ukraine’s Response
IDS Ukraine itself denies any violations of the law and states that the company operates within the legal framework of Ukraine. Representatives of the group emphasize that no competent Ukrainian government agency, including the State Tax Service, has established any facts of money laundering, illegal transfer of funds, or other similar financial activities on the part of IDS Ukraine. The company also states that it has not ceased operations since the start of the full-scale invasion.
“IDS Ukraine has not ceased operations for a single day since the start of the full-scale invasion. The group continued production and supplied drinking water to Ukrainian consumers even during constant rocket and drone attacks,” the company stated. IDS Ukraine separately criticizes ARMA’s actions. In August, the company stated that the agency was conducting a comprehensive audit of its operations ahead of a tender to select a manager. The company considers such actions illogical and emphasizes that its corporate rights have been under seizure since 2022.
What Will Happen to Morshynska
Separate from the dispute over ownership, the process of selecting a manager for IDS Ukraine’s corporate rights is ongoing. ARMA announced a competition to select a manager back in May 2026. At the time, the company stated that the tender itself does not affect the operations of its facilities: the plants in Morshyn and Myrhorod continue to operate, and water production and supply have not been interrupted.
At the same time, separate proceedings are underway in the High Anti-Corruption Court related to the state’s attempts to nationalize part or all of IDS Ukraine’s assets. The Guardian reports that Ukrainian authorities view the company as an important strategic asset amid the war. For the company itself, the situation means a continuation of a long-standing battle for control over corporate rights. For the state, it is an attempt to secure control over an asset, part of which is linked to Russian investors.
And for the British Patarkatsishvili family, the issue has already gone beyond the scope of a typical corporate dispute. If an attempt is made to permanently seize their stake, the shareholders promise to continue the fight at the international level. For now, however, there is no final decision regarding the Patarkatsishvili family’s 34.83% stake. Ukrainian courts and government agencies continue to consider issues related to IDS Ukraine, while the company itself continues to operate. The Guardian reports on this.
On August 22, ARMA announced that the competition to select an administrator for the corporate rights of IDS Ukraine—a group that includes the producers of “Morshynska,” “Mirgorodska,” and “Alaska”—had entered its final stage.
