SPFU prepares Mykolaiv plant confiscated from Russian oligarch for privatization

Ukraine is planning to privatize Mykolaiv Alumina Plant (MGZ), which was previously owned by sanctioned Russian oligarch Oleg Deripaska.

Currently, the State Property Fund is registering this property to form the authorized capital of MGZ, after which a large-scale privatization of the plant may begin, LIGA.net reports.

The High Anti-Corruption Court has ruled to transfer 100% of MGZ's corporate rights, which were previously controlled by Deripaska, to state ownership. In addition, more than 150 buildings and more than 200 vehicles were seized.

The Fund assured that MGZ would definitely be put up for privatization.

In February 2023, the HACC ruled to transfer the company to the state as part of sanctions against Deripaska, and on March 20, 2024, the State Property Fund of Ukraine became the sole owner of the plant.

Previously, the corporate rights of Mykolaiv Alumina Plant were owned by Aluminium of Ukraine (13.96%) and Guardon Ukraine (86.04%), which have now been nationalized and transferred to the state.

It is worth adding that the Mykolaiv Alumina Plant is one of the largest non-ferrous metallurgy enterprises in Europe. Deripaska took control of the plant in the early 2000s.

In 2016, Ukraine imposed sanctions on Deripaska 's companies, Rusal and Cyprus-based Judson Trading Limited. In 2017, it was reported that Rusal had allegedly sold MGZ to Swiss trader Glencore, but in 2018 it became known that Deripaska retained control of the plant.

On March 1, 2022, Rusal announced that production at the Mykolaiv Alumina Plant had been suspended due to the war. Previously, the plant produced 1.7 million tons of alumina per year, which was about 20% of Deripaska's total alumina output, and was the company's second largest asset.

In July, the head of the State Property Fund, Vitaliy Koval, visited MGZ and promised to create conditions to resume its operation.

In May , the HACCU seized the fishing trawler Bukhta Sokolovskaya, which belonged to the holding of the sanctioned Russian oligarch Alexander Verkhovsky, in favor of the state. At the time of the full-scale invasion, the vessel was undergoing repairs in Mykolaiv.

The SPFU also sold the apartments of Russian oligarch Mikhail Shelkov and Ukrainian collaborator Volodymyr Saldo in Odesa for almost UAH 7 million.

In addition, the National Asset Recovery and Management Agency (ARMA) sold its first seized asset - 1,200 tons of grain were sold for 4.9 million. This is the grain seized in Mykolaiv.