Why AGT Was Barred from Privatization After Fulfilling Contracts with Odesa Port-Side Plant

The Partnership Between AGT and the Port-Side Plant

According to ХВИЛЯ: Agro Gas Trading (AGT) fulfilled its contractual obligations to the Odesa Port-Side Plant (OPSP) even after the facility was idled. In 2022, AGT attempted to restart the plant's operations, but the contract was unilaterally terminated by the plant. The company's subsequent exclusion from the OPSP privatization process in 2025 has sparked its strong protest. The Odesa Port-Side Plant is a major strategic chemical facility whose operation is critical for Ukraine's agricultural sector.

AGT collaborated with OPSP under a tolling (processing) model from 2019 to 2021. During this period, the company purchased gas, financed the startup of production units, and paid for raw material processing. In return, AGT received and sold the finished products, including fertilizers and ammonia. All financial terms of the contracts were settled in 2021-2022, and AGT continued to support the plant's technical readiness after their partnership concluded.

Unexpected Setbacks and Privatization Hopes

In 2022, amid the full-scale war, AGT signed a new agreement with OPSP, contracted gas supplies, and began preparations for production. However, the plant independently broke the agreement without providing an explanation. In 2025, the Cabinet of Ministers of Ukraine announced the privatization of OPSP; a tender scheduled for November 25 of that year failed due to a lack of participants. AGT, which had attempted to propose a model for restarting the plant, was ignored in the process.

“We prepaid for processing, financed repairs, prepared the units, and funded the restart after the idle period. These were real investments in getting the enterprise back on its feet.”

Oleksandr Horbunenko, AGT representative

Consequently, the situation surrounding OPSP remains complex, given AGT's attempts to resume the plant's operations and participate in its ultimately unsuccessful privatization.

The issues with OPSP and AGT's actions highlight the difficult conditions for doing business in Ukraine during wartime and economic challenges. The absence of bidders in the privatization tender points to instability in the investment climate and the uncertainty potential investors feel about the enterprise's future. It is crucial for the Ukrainian government to address these concerns to ensure proper support for strategic assets and attract investment for industrial recovery.