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auction, where three investors bid $740,000 (Hr 20mn) each. General Commerce is based in Cyprus and registered in Kyiv, with a capital of $150 (Hr 4,000). The company will also get a one-hectare plot at Trukhaniv Island in the heart of Kyiv and several smaller plots in the city.
The first big privatization of the year is to take place on November 2 – the auction of a 35-hectare industrial site at the corner of Kyiv’s Peremoha Avenue and Shuliavsky Bridge. Ideal for apartment buildings, office buildings, and a hotel, the former Bilshovyk machinery plant has a $53 million starting price. The Kyiv Post reports that the newspaper’s owner, Adnan Kivan, and other real estate developers pulled out of the auction due to legal claims on five workshops on the lot. In response, State Property Fund Chairman Dmytro Sennychenko says the Supreme Court returned these shops to state ownership and the auction will proceed as planned.
The second big privatization takes place on Oct. 29 – the sale of United Mining and Chemical Company. The sale of this titanium giant had been postponed for two months to attract more potential buyers. The starting price is $140 million.
The auction of the state-run Ukrainian United Mining and Chemical Company (UMCC) — Europe’s largest titanium and zirconium miner — scheduled on Oct. 29 did not take place due to a lack of bidders, according to the State Property Fund. This is the second time the auction’s been canceled, after the first unsuccessful attempt to sell the plant in August. The State Property Fund was about to sell it for $140 million (Hr 3.7 billion) as a starting price. Although a dozen companies have already shown interest in buying the plant, including investors from Australia and Japan, the fund said it only received two applications, which is not enough to set up the auction. Titanium production is the core business of oligarch Firtash’s Group DF, which previously owned the plants. The UMCC has long been owned by, directly or through proxies, by Firtash, now exiled in Vienna for over seven years.
Ukraine’s three smallest Black Sea ports -- Ust-Dunaisk, Skadovsk and Bilhorod-Dnistrovsk – will be sold through auction by March, Taras Yeleiko, deputy head of the State Property Fund, predicted at the New Port conference this week in Kyiv. By the end of next week, the Fund will make public the details for the sale of the first one, Ust-Dunaisk. Located near the mouth of the Danube, this port covers 15 hectares. For all three privatizations, the government is looking for investors committed to renovating and reviving the ports. After these sales, the government plans to rent to private operators more and more terminals at Ukraine’s 10 remaining state-owned ports
Borshchiv distillery to be privatized and sold for a starting price of ₴21 mln ($795,000). The State Property Fund (SPFU) will put the Lipnytsia distillery in the Zhytomyr region up for an online auction to take place on November 19, 2021. The asset is being sold along with real estate including a building area of 16,617 square meters. The distillery is located on a land plot of 47.9 hectares. In addition, the production facility, the company owns another 45 units of real estate, 20 vehicles, and 588 units of equipment.
Privatization of the Kyiv "Electronmash" plant was announced by the State Property Fund. "Electronmash", is up for an auction with a starting price is UAH 66.7 million ($2.54 mln). The auction is scheduled for November 12. Along with the production facilities, the enterprise owns more than 100,000 square meters of real estate.
33 UKRAINE Country Report November 2021 www.intellinews.com