A British theatre producer and her billionaire family are caught up in a bitter legal fight with Ukrainian authorities, who are trying to seize a water company the family co-owns with a Russian oligarch.
The dispute centers on a 34% stake in the company behind Ukraine’s biggest bottled water brands, held by the Patarkatsishvili family. This includes Liana Patarkatsishvili, who recently worked on an immersive show with Toby Jones and Meera Syal.
In 2022, Ukrainian authorities froze the corporate holdings of IDS Ukraine because Russian investors, including Mikhail Fridman—founder of the Russian Alfa Group conglomerate—also hold a 49% stake in the company. Fridman is under Western sanctions for backing Vladimir Putin’s regime.
Ukraine’s Asset Recovery and Management Agency (Arma) has been tasked with bringing in independent managers to run the company, whose other minority shareholders include the Georgian government.
Arma’s head, Yaroslava Maksymenko, said they have repeatedly hit legal and bureaucratic hurdles, partly because shareholders have resisted giving up control of their assets.
The agency also claims it was targeted by a cyber-attack during one attempt to find an independent manager for the company. There is no evidence pointing to who was responsible, and the Patarkatsishvili family is not suspected.
However, Maksymenko said New World Value Fund Limited—the investment vehicle the Patarkatsishvilis use for their stake in IDS Ukraine—had pursued an unfounded claim of unlawful conduct by Arma officials, which she described as “misinformation.”
An investigation into those claims by Ukraine’s National Anti-Corruption Bureau is still ongoing.
Maksymenko said her agency is worried about potential money laundering and value being stripped from IDS Ukraine if it stays under current management, though no official findings of such wrongdoing have been made.
Separately, the shareholders are fighting attempts to nationalize part or all of IDS Ukraine in Ukraine’s anti-corruption high court. Some in the government see the company as a key strategic asset during wartime.
A spokesperson for the Patarkatsishvili family said they have been strong supporters of Ukraine since Russia launched its full-scale invasion in February 2022. They added that the family is being unfairly targeted and would seek justice in international courts if needed.
They said: “The Patarkatsishvili family strongly believes that an asset should not be taken away from non-sanctioned shareholders against whom there are no allegations or concerns, and is defending this position through all relevant proceedings before the Ukrainian courts and authorities.
“If the Patarkatsishvili family is unable to obtain justice through the Ukrainian courts, and the asset is ultimately taken away through the Arma process, it will, of course, have no choice but to seek justice before the international courts, as it has consistently done in the past.”
The family’s stake in IDS Ukraine was inherited in 2008 by Liana, her sister Iya, and their mother Inna, after the death of Badri Patarkatsishvili, a businessman who made his fortune during the breakup of the Soviet Union.
Patarkatsishvili fled to the UK in 2007 but died in 2008 of a heart attack at age 52, leaving an estimated fortune of £6bn. Last year, Iya Patarkatsishvili and her husband made headlines after being granted a refund for a £32m London mansion that was reportedly infested with moths.Earlier, Liana Patarkatsishvili staged a large-scale immersive theatre production called Storehouse, which focused on the theme of “misinformation,” through her production company Sage & Jester. The show featured actors Toby Jones and Meera Syal.
A spokesperson for IDS Ukraine stated: “Throughout its operations, the IDS Ukraine Group of companies has always complied, and continues to comply, with Ukrainian law, including tax and financial regulations.”
“No competent state authority in Ukraine, including the state tax service, has found any evidence of money laundering, illegal fund transfers, or any other similar financial misconduct by IDS Ukraine.”
“We are not aware of any investigations or current inquiries by Ukrainian authorities into IDS Ukraine’s operations regarding such allegations.”
“Additionally, IDS Ukraine has not halted operations for even a single day since the start of Russia’s full-scale invasion. The group kept producing and supplying drinking water to Ukrainian consumers, even during continuous missile and drone attacks.”
The spokesperson added: “We are aware of statements from the asset recovery and management agency that imply, without directly saying so, that a cyber-attack is somehow linked to the IDS Ukraine Group of companies. However, this information is simply false and, in reality, completely irrelevant.”
Frequently Asked Questions
Here is a list of FAQs regarding Ukraines move to take control of the water company owned by the billionaire family of a British theatre magnate
General Background Questions
Q What is actually happening with this water company in Ukraine
A The Ukrainian government has decided to take control a private water supply company The company is owned by a wealthy family connected to a British theatre owner The state is stepping in to manage it citing reasons of national security and economic stability
Q Who owns the water company and why does the British theatre magnate matter
A The company is owned by the billionaire family of Len Blavatnik who is a major donor and backer of Londons Royal Opera House and other UK arts The theatre connection is just how the owner is best known in British media the core issue is his business holdings in Ukraine
Q Why is Ukraine taking control of a water company in the first place
A The Ukrainian government claims the company is strategically vital and that the current ownership structure poses risks to national security especially during the ongoing war They also cite unpaid debts and alleged mismanagement as reasons for the takeover
Q Is this the first time Ukraine has done this
A No Since the start of the fullscale war in 2022 Ukraine has nationalized several assets owned by individuals or companies it considers proRussian or critical to war efforts This specific case is notable because the owner is a Westernbased billionaire not a Russian oligarch
Legal Financial Questions
Q Is this a seizure or a nationalization Whats the legal difference
A In practice its a forced transfer of control to the state Legally Ukraine is using wartime martial law powers to temporarily take over the management of the asset A full nationalization implies a permanent transfer of ownership with compensation In this case the owner is being told they will lose control but the legal process for compensation is still unclear and likely to be contested
Q Will the billionaire family get their money back or be compensated
