The court rejected the demolition of the unauthorized structure on the premises of the Lviv pasta factory.
The Western Economic Court of Appeal has refused to return the plot of land in the territory of the Lviv Pasta Factory to the Lviv City Council.
In 2022, the company "Ukrainian Financial United Group" purchased the assets of the bankrupt JSC "Lviv Pasta Factory" located at 170 Horodotska Street at an auction. This included a mechanical workshop with an area of 345.1 m2 and a non-residential building converted into a warehouse with an area of 198 m2. Notably, the conversion of the non-residential building into a warehouse was carried out without permits, and the city council, which owns the land under the property, did not grant any construction permits. Additionally, the lease agreement for the 1.2-hectare plot, concluded in 2004 between the Lviv City Council and the Lviv Pasta Factory, expired back in 2014, prompting the city council to file a lawsuit demanding the demolition of the unauthorized construction.
Representatives of "Ukrainian Financial United Group" stated that they cannot be held accountable for the actions of previous property owners. Furthermore, the warehouse reconstruction in 2005 was carried out following a decision by the executive committee of the Lviv City Council.
Considering the circumstances of the case, in July 2024, the Economic Court denied the city council's request. The city council sought to remove obstacles to the use of the land and demolish the unauthorized structure. In November, this decision was upheld by the appellate court. This ruling can be appealed in cassation.
Additionally, it is worth noting that "Ukrainian Financial United Group" was registered in 2016 in Lviv. The sole owner of the company is Yuriy Kvitkin, a resident of Lviv region.
The "Lviv Pasta Factory" began operations in Lviv during the Soviet era. In 1996, the enterprise was privatized and continued to produce pasta. In 2010, the Lviv Economic Court initiated bankruptcy proceedings against the factory due to its failure to meet obligations to creditors. This case was under consideration for over 11 years, and since 2012, the enterprise has officially been in a state of cessation.
The assets of the bankrupt pasta factory were placed in mortgage to secure the fulfillment of obligations to creditors amounting to 24.7 million UAH and 23.9 million UAH. In 2019, the Western Economic Court of Appeal allowed the sale of the Lviv Pasta Factory's assets to partially settle the debt. In July 2019, state registrars re-registered the ownership rights to the real estate of JSC "Lviv Pasta Factory" to LLC "Citycom Estate." The former director of the factory, Yevheniy Hnatov, believes that raiders took the enterprise from him.