Russia’s occupying administration in the Zaporizhzhia region has declared 521 hotels and coastal resorts along the Sea of Azov “ownerless.” At least 77 of them are already controlled by Russian companies, while at least 20 have been placed under the management of Russian state structures, a Reuters investigation found.
Among the affected owners is Ukrainian entrepreneur Denys Katyukha, who built the Admiral hotel complex in Kyrylivka. He began construction in August 2014 and gradually transformed a plot of land by the sea into a complex with 100 rooms, three bars, a restaurant, a shop, a swimming pool and a children’s water area.
In 2021, Kyrylivka was visited by around 2 million tourists. After Russia’s occupation of part of the Zaporizhzhia region, however, the hotel and other tourist facilities were included in a scheme to transfer ownership.
Three Days to Prove Ownership
In September 2022, armed men entered the Admiral and declared it “ownerless,” Katyukha recounts. By then, he had already left Ukraine and settled in Germany. His father, who remained in the area, was told that he had three days to produce ownership documents.
According to Katyukha, the documents were submitted, but the occupation authorities did not recognize Ukrainian passports and title deeds. “These are documents from a nonexistent state,” he was reportedly told, according to the entrepreneur.
On September 28, 2022, a Russian commission appointed a new owner of the Admiral, along with more than 100 other enterprises, including medical centers, farms, post offices and a cannery. The state structure Resorts of the Zaporizhzhia Region was named for the hotel; in April, it was renamed the Agency for Investment Development of the Zaporizhzhia Region.
Court Awards $5.1 Million
Katyukha began calculating his losses in 2023. Preparing the claim involved around 3,000 pages of invoices, bank statements and an inventory of the equipment. His calculations even included a $40 microwave oven, a $41 chandelier and a can opener worth 20 cents.
After proceedings lasting 11 months, on April 30 Judge Mykhailo Smokovych awarded the entrepreneur $5.1 million in compensation. The ruling described Russia’s actions as “de facto expropriation.” The Russian side did not send a representative and did not participate in the proceedings.
“For now, I am the victim — Don Quixote fighting windmills,” Katyukha says.Kremlin spokesperson Dmitry Peskov defended the Russian procedure, saying: “Everyone who wished to do so was given the opportunity to re-register their property under Russian law. Properties that were not re-registered became ownerless.” The occupation authorities in the Zaporizhzhia region did not respond to Reuters’ questions.
Claims Without a Guaranteed Payment Mechanism
Katyukha has also submitted an application to the Register of Damage for Ukraine, which is supported by the European Union. It already contains more than 195,000 claims, and the expectation is that their number will reach between 6 million and 8 million. So far, no mechanism has been established for paying the compensation awarded.
The entrepreneur acknowledges that Russia will probably not pay him during his lifetime. He continues the legal battle in the hope that the judgment will remain as evidence of the seizure of his business and may be used under a future compensation mechanism.
Sources: reuters.com