ARMA’s tender for ‘Morshynska’ ended without a winner
This is evidenced by data from the Prozorro electronic system, a statement from ARMA and data from OpenDataBot.
ARMA announced a tender for the asset manager of IDS Ukraine on 15 May 2026. This concerned one of the largest assets in Ukraine’s bottled water market, associated with the ‘Morshynska’ and ‘Mirgorodska’ brands.
Applications to participate in the tender were accepted until 26 June. However, following the deadline for submitting documents, the procedure did not result in the appointment of a manager. On Prozorro, the tender is listed as having failed to take place.
The sole participant in the procedure was HOTEY RESPECT LLC. No other bidders for the management of IDS Ukraine’s assets are listed in the publicly available data for the procedure.
Which assets were to be transferred to management
The list of assets on Prozorro includes corporate rights and shares relating to PrJSC ‘Mirgorod Mineral Water Plant’, PrJSC ‘Morshyn Mineral Water Plant “Oscar”’, PJSC ‘Industrial and Distribution Systems’, LLC ‘IDS Aqua Service’, State Enterprise ‘Nova.Com’, Private Enterprise ‘IVA’ and LLC ‘Potuzhnost’.
ARMA had previously noted that IDS Ukraine’s assets were seized in 2022 due to links with Russian oligarch Mikhail Fridman, who is subject to sanctions imposed by Ukraine, the US, the EU, the UK and other partner states.
Why the tender was important
This tender was intended to be one of the first significant tests of the new mechanism for selecting managers of complex seized assets via Prozorro.
ARMA stated that preparations for the tender had taken almost a year. During this time, according to the agency, an independent valuation of the asset was carried out, management terms were drawn up and updated approaches to working with strategic assets were introduced.
The new rules provide for stricter requirements for candidates, tougher selection criteria and additional mechanisms for monitoring the management of seized assets.
What were the financial terms?
The terms of the tender placed a significant financial burden on the potential manager.
One of the clarifications on Prozorro states that the minimum annual revenue to the state budget for 2026 is set at 1.009 billion UAH. This amounts to over 84 million UAH per month.
The procedure also referred to the need to provide a tender guarantee and to the administrator’s obligations regarding the preservation of the asset and the fulfilment of the contract’s financial conditions. If the actual income from management were to be lower, the administrator would have to cover the shortfall from their own funds or remuneration.
Who was the sole participant?
The sole participant in the tender was HOTEY RESPECT LLC. According to OpenDataBot, the company was registered on 30 May 2022 in Zaporizhzhia. Its main activity is the wholesale trade in fuel and similar products.
Oleksii Chugaienko is listed as the company’s director. For the year ending 2025, “HOTAY RESPECT” LLC’s turnover stood at 367,000 UAH, whilst its net profit was 3,500 UAH.
These figures contrast sharply with the scale of the asset for which a manager was being sought. This concerns a group linked to one of Ukraine’s best-known bottled water brands, and a tender involving potential monthly budget revenues running into tens of millions of hryvnias.
Why the tender failed to produce a result
Formally, the tender did not take place due to the lack of competitive selection. There was only one participant in the procedure, so no manager was appointed for IDS Ukraine’s assets.
This is not the first unsuccessful attempt by ARMA to find a manager for this asset. Previous procedures also failed to produce a definitive outcome, and the new tender was intended to demonstrate whether the updated model could attract strong players with experience, financial capacity and a good reputation.
Following the failure of the tender, ARMA is set to announce a new selection process for a manager.
The agency has stated that the main objective is to identify a professional and effective manager capable of ensuring the proper management of this strategic asset. ARMA also promises to work on attracting a wider range of potential market participants.
The new tender will reveal whether the state will be able to find a manager for IDS Ukraine’s assets, or whether ‘Morshynska’ and the group’s other assets will once again be left without a designated manager.
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