Up to Six Major Factories Set for Privatization by Ukraine’s State Property Fund Before Year-End

Privatization of State-Owned Assets in Ukraine

According to Главком: Ukraine’s State Property Fund (SPFU) intends to put at least six to seven large state-owned assets up for privatization by the end of the year. These include:

• Odesa Portside Plant
• Demurynskyi Mining and Processing Plant
• Sumykhimprom
• Motordetal-Konotop

SPFU Chairman Dmytro Natalukha disclosed this in an interview with the Ukrainian outlet Glavkom.

So far, four auction committees have been formed for these specific assets. 'As of today, we have already held four auction committees-for Odesa Portside, Demurynskyi GZK, Sumykhimprom, and Motordetal-Konotop. Auction committees essentially mark the starting point of the process,' Natalukha explained.

Additionally, the fund is preparing to sell the Ocean Plaza shopping center, although the state only owns 66.65% of its shares. The center carries a debt exceeding $140 million. For these major privatization targets, three to five potential buyers have already expressed interest. Investors from the United States, European Union nations, Asia, and the Persian Gulf states are showing interest in Ukrainian state assets.

'If we imagine the war continues through year-end, they will have to make this bet still under wartime conditions. That is why I am keen to push everything through as quickly as possible and encourage potential investors to make a decision.' Dmytro Natalukha, Chairman of the SPFU

The privatization of state assets in Ukraine represents a critical step in economic reform, especially amid the ongoing war. The State Property Fund is actively courting foreign investors, which could boost the national economy, though it also carries risks due to the unstable environment. Investor interest highlights potential opportunities for Ukrainian business growth, provided the privatization process succeeds.

As the State Property Fund accelerates its efforts to privatize significant assets, it is essential to consider the broader context of Ukraine's privatization strategy. Notably, plans are already in motion for the privatization of seven state-owned plants slated for 2026, which could further reshape the economic landscape. For more insights on these upcoming privatization initiatives, you can read about the scheduled state plant privatizations that are set to follow.