Kyiv's Pechersky District Court arrested over 99% of shares in Chornomorsky Shipbuilding Yard (Mykolaiv), Ukrainian Prosecutor General Yuriy Lutsenko has said, referring to a court ruling dated June 21.

"On June 21, 2017 Kyiv's Pechersky District Court arrested immovable property of Chornomorsky Shipbuilding Yard (workshops, warehouses, complete quay, recreation complex and other facilities, a total of 21 facilities) located in Mykolaiv and Koblevo, Mykolaiv region, as well as 99.87% of shares in the company owned by nine companies registered in Ukraine and Cyprus," he wrote on his Facebook page.

Lutsenko said that the PGO department is investigating into abuse of office by officials of the State Property Fund of Ukraine (SPF), the Ministry of Industrial Policy of Ukraine and OJSC Kherson Shipyard when amendments to paragraph 11.6 of the sale and purchase agreement for Chornomorsky Shipbuilding Yard were made. This resulted in the reduction of investment liabilities in the amount of over UAH 500 million and caused damage to the state.

Smart Maritime Group (SMG) created in 2009 by businessman Vadim Novinsky includes Chornomorsky Shipbuilding Yard and Kherson Shipyard.