Ukraine to Auction Off Ocean Plaza Mall: Expected Revenue from Privatization Revealed

Privatization in Ukraine: Ocean Plaza Shopping Center Heads to Auction

According to Главком: Ukraine's government expects to raise approximately 13 billion hryvnias through privatization in 2026, with the flagship lot being the Ocean Plaza shopping and entertainment complex in Kyiv. Prime Minister Yulia Svyrydenko announced that the mall will be put up for public auction in the third quarter of 2026. Proceeds from the sale of sanctioned assets will be funneled into a recovery fund.

Under the large-scale privatization program, the government aims to generate 10 billion hryvnias, while small-scale privatization is projected to bring in 3 billion hryvnias. Since the start of the year, small-scale privatization has already contributed over 1 billion hryvnias to the state budget. Discussions on large-scale privatization took place at Ocean Plaza, with participation from the Ministry of Economy and the State Property Fund.

The Story of Ocean Plaza Mall

Ocean Plaza, which opened on November 19, 2012, was previously owned by Russian oligarch Arkady Rotenberg and his partners. The asset was transferred to the state under sanctions legislation, and on July 25, 2022, the mall was closed following the start of Russia's full-scale invasion. In August 2022, the mall's corporate rights were placed under the management of the Asset Recovery and Management Agency (ARMA). On August 12, the Pechersk District Court of Kyiv lifted the seizure of the Ocean Plaza building and unfroze its accounts.

Ocean Plaza reopened its doors to visitors in November 2022. In March 2023, the High Anti-Corruption Court (HACC) confiscated the mall from Russian oligarchs Arkady and Igor Rotenberg. The state acquired 100% of the charter capital in Avangard-Vilarti LLC and 66.65% of the charter capital in Investment Union Lybid LLC.

The estimated market value of Ocean Plaza stands at around $100 million. The HACC Appeals Chamber upheld the decision to nationalize Ocean Plaza's debts owed to Russian oligarchs. Arkady and Igor Rotenberg, who are close associates of dictator Vladimir Putin, have been placed on a wanted list.

In this context, the government aims to accelerate the privatization process, focusing on Ocean Plaza and other assets that could significantly boost state revenues.

This move underscores the Ukrainian government's efforts amid war-induced economic challenges and its push to attract investment for national recovery.

Privatizing assets seized from Russian oligarchs could become a key element in funding infrastructure restoration and social programs, which is critical for state stability under current conditions.

As Ukraine navigates its privatization efforts, the situation surrounding other properties once owned by Russian citizens is also evolving. For instance, the city is planning to transform Metrohrad Mall into a parking garage equipped with a bomb shelter, highlighting the government's strategic approach to repurposing assets linked to the previous regime. Understanding these developments can provide a clearer picture of the broader economic landscape in the country.