The government has paved the way for the privatization of the Odesa Port Plant

The government has taken another step toward restarting one of the country’s largest industrial enterprises, which has been operating intermittently for years. The Cabinet of Ministers expects that the arrival of a private investor will make it possible to modernize production and restore the plant to full operation.

This was announced by First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko.

The Cabinet of Ministers of Ukraine has approved the terms for the large-scale privatization of the Odesa Port Plant. 

The state’s stake in the Odesa Port Plant is planned to be offered in an open electronic auction with a starting price of over 4.3 billion hryvnias. 

According to Svyrydenko, the main goal of the privatization is to attract a strategic investor who will ensure the resumption of operations at one of Ukraine’s largest chemical enterprises.

The government has set a number of mandatory requirements for a potential buyer. In particular, the new owner must invest at least 500 million hryvnias in modernizing production and improving its energy efficiency. The buyer must also preserve the enterprise’s core business activities.

In addition to the Odesa Port Plant, the government has approved the terms of sale for two other assets that were previously subject to sanctions. These are Demurinsky Mining and Processing Plant LLC, with a starting price of 1.82 billion hryvnias, and MotorDetal-Konotop LLC, with a starting price of 415.5 million hryvnias. All three enterprises will be sold through open online auctions on the Prozorro.Sales platform.

According to the Ministry of Economy, the proceeds from the sale of sanctioned assets will be directed to the Fund for Eliminating the Consequences of Armed Aggression. The funds are planned to be used for Ukraine’s recovery.

The government also expects that privatization will allow these enterprises to resume operations, modernize their production facilities, and expand the export capabilities of Ukrainian industry.

 Among the assets planned for public auction is the Mykolaiv Alumina Plant, with a total starting price of over 10 billion hryvnias.

Анна Бальчінос