A key chemical plant in Odesa is preparing to change ownership

The government has approved the terms of the sale of shares in the Odesa Port Plant at an electronic auction. The starting price of the package is more than UAH 4 billion, and the new owner is obliged to invest more than UAH 500 million in the plant and resume production.

This was reported by the press service of the Ministry of Economy of Ukraine.

The Cabinet of Ministers of Ukraine has approved the conditions for the sale of 99.5667% of the shares of Odesa Port Plant JSC at an electronic auction. The Government made the decision at a meeting on August 26.

This object is one of the key ones in the large-scale privatization: the government began preparations for the sale of the state-owned stake in the OPP in December 2024. The starting price of the stake is set at UAH 4.488 billion, and it does not take into account additional liabilities that affect the real value of the assets.

The main conditions of the sale include: maintaining the company's core business for five years; investing at least UAH 500 million during this period; repayment of salary and budget arrears within a year; repayment of overdue accounts payable within five years, except for arrears to sanctioned persons and residents of the Russian Federation and Belarus; ensuring social guarantees for employees and compliance with environmental legislation.

The State Property Fund will report annually to the Cabinet of Ministers on the new owner's compliance with these conditions.

Large-scale privatization is a priority for the Government. The sale of such a large facility as the OPP creates a chance to restore its operation, attract investments and fill the state budget," emphasized Deputy Minister of Economy, Environment and Agriculture Daria Marchak.

"The privatization of the OPP will allow the plant to resume operations, which has been suspended since September 2021 due to problems with gas supplies and low market prices for its products. In April 2022, the plant was mothballed and employees were sent on indefinite leave. The new owner and investments will allow the plant to resume production even in wartime.

The nominal value of Odesa Port Plant' s shares was UAH 795 million. The company specializes in the production of fertilizers and nitrogen compounds.

As of March 31, 2024, the plant's total accounts payable exceeded UAH 16.2 million. Of this amount, UAH 9.7 million was for goods, works and services, 94 thousand was for budgetary debts, 91 thousand was for insurance premiums, 111.9 thousand was for salaries, and another UAH 6.57 million was for other loan debts.

In December last year, Austrian and French law enforcement officers found and seized assets of individuals suspected of participating in a criminal organization led by former head of the State Property Fund of Ukraine Dmytro Sennychenko. The case is linked to the embezzlement of funds from the Odesa Port Plant.

Анна Бальчінос