Privatization of the Odesa Portside Plant
The Cabinet of Ministers of Ukraine has approved the terms for selling the Odesa Portside Plant, along with two sanctioned assets: Demurynskyi GZK LLC and Motordetal-Konotop LLC. These sales will be conducted through open online auctions on the Prozorro.Sales platform. Proceeds will go to the Fund for Elimination of the Consequences of Armed Aggression.
The starting price for the state-owned stake in the Odesa Portside Plant exceeds 4.3 billion hryvnia. Any purchaser must commit to investing at least 500 million hryvnia in modernizing the facility and improving its energy efficiency. For Demurynskyi GZK LLC, the starting bid is set at 1.82 billion hryvnia, while Motordetal-Konotop LLC carries a starting price of 415.5 million hryvnia.
Why This Privatization Matters for Ukraine's Economy
Yuliia Svyrydenko, Deputy Prime Minister of Ukraine, stated that privatizing these assets "will allow us to restore full operation of the enterprises, modernize production, and expand the export capabilities of Ukrainian industry."
The sale of the Odesa Portside Plant and other assets is part of the government's broader strategy to attract investment amid war and economic hardship. Successfully completing these auctions could mark a pivotal step in rebuilding Ukraine's industrial capacity and securing funding to address the consequences of armed aggression.
Bringing in new investors is also expected to drive production upgrades and boost the competitiveness of Ukrainian industry on global markets.