Why the Privatization of Ukraine's Odesa Port-Side Plant Collapsed and What's Next

Failed Sale of a Major Ukrainian Industrial Asset

According to ХВИЛЯ: The privatization auction for the Odesa Port-Side Plant (OPS), scheduled for November 25, 2025, was cancelled after failing to attract any bidders. The starting price for the state-owned chemical plant was set at 4.5 billion Ukrainian hryvnias (UAH). While officials cited a lack of participants as the official reason, the company Agro Gas Trading (AGT) was notably barred from the process without explanation. This failed sale is a significant setback for Ukraine's efforts to attract foreign investment in its industrial sector during wartime.

Between 2019 and 2021, AGT acted as a supplier of natural gas to OPS and paid the plant the equivalent of 4.5 billion UAH for gas processing services. During this period of cooperation, OPS produced nearly 2 million tons of product, 90% of which was exported. For context, Ukraine's state budget for 2026 projects only 2 billion hryvnias in total revenue from privatization.

AGT Representative Voices Concerns

“It’s one paradox after another-proposing to sell OPS during a war for a price four times lower than its debt obligations. Or for a price equal to the total payments AGT made to OPS over our entire period of collaboration.”

Oleksandr Horbunenko, AGT representative

He added: “Either the state doesn't believe it can sell OPS, or it is quietly planning to lower the starting price-I can find no other explanation.”

Currently, OPS is idle, with its facilities being used primarily for transshipping grain. A new privatization auction for the plant is now planned for 2026.

The collapse of the OPS sale serves as a critical indicator of the challenges facing state-owned assets in Ukraine, particularly under wartime conditions. The absence of bidders likely reflects low confidence in the privatization process and broader economic instability. While the government's plan for a new auction in 2026 shows its continued intent to attract investment into this strategic asset, serious questions remain about the realism of the starting price and the level of genuine investor interest.