The Privatization of the Odessa Port-Side Plant
The Odessa Port-Side Plant (OPZ) is slated for privatization in 2025. However, establishing an objective starting price for the facility is currently impossible due to a lack of access to data on its technical and financial condition, as the plant has been idle since September 2021. This point was emphasized by Oleksandr Horbunenko, a partner at Agro Gas Trading (AGT). AGT intends to participate in a new privatization tender for the OPZ, which is now scheduled for 2026. The plant's privatization is a significant state asset sale, attracting attention from domestic industrial players.
Past Cooperation with AGT and Plant Assessment Challenges
From 2019 to 2021, AGT collaborated with the OPZ under a tolling contract, supplying the plant with over 1.4 billion cubic meters of gas. This cooperation yielded nearly 2 million tons of urea and ammonia, with AGT's total payments to the OPZ amounting to 4.5 billion UAH. However, when registering for the auction, AGT did not receive a non-disclosure agreement (NDA), which complicates a thorough assessment of the plant's current state.
Oleksandr Horbunenko noted that the last time an adequate valuation was possible was when the plant was operational back in 2021. He stressed that appraising an asset of this scale during wartime and after a prolonged shutdown is exceptionally difficult.
"When an enterprise is operating, it's clear how to calculate its value. There are financial indicators, a plan, a perspective, and then the price would be higher," said Oleksandr Horbunenko.
It is important to highlight that the OPZ possesses four piers, which Horbunenko identified as a key asset.
"The most important thing is the OPZ's four piers. If you calculate the cost of building similar structures today, each pier would be worth no less than $50 million. And there are four of them. This is a ready-made port," stated Oleksandr Horbunenko.
A previous privatization tender held in November 2025 was declared unsuccessful due to a lack of participants. Therefore, AGT's involvement in the future tender creates new possibilities for determining the fate of the Odessa Port-Side Plant. The upcoming sale is seen as a potential catalyst for reviving this major industrial facility, which was once a key producer of mineral fertilizers.
Privatization in 2026 could mark a crucial step in restarting the plant's operations and attracting investment into the Ukrainian economy. While the presence of four piers enhances its appeal to potential investors, the absence of reliable financial data complicates decision-making. A successful sale could unlock opportunities for modernizing the facility and returning it to active service, which would positively impact the regional economy.