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the alcohol industry exceeds ₴4B. In March, the Fund plans to hold four such auctions, including the Lokhvytsky distillery, the Kamyan distillery, the Kholminsky distillery, and the Hannopil distillery.
Ukraine plans to sell two state banks. According to the memorandum with the IMF, two state banks, Sens Bank and Ukrgasbank, will prepare for privatization. After the government selects a consultant, they will propose a comprehensive action plan to sell the banks.
The government is seeking a buyer for a packaging factory confiscated from a Russian oligarch. The State Property Fund (SPFU) is preparing to privatize the PentoPak plant, which Ukraine confiscated from Russian-Greek oligarch Ivan Savvidi for supporting Russian aggression. "I am sure that the lot will be interesting for investors. After all, this is a ready-made business that is in the rapidly developing Ukrainian food industry," stressed the head of the SPFU, Vitaly Koval. PentoPak is a leader in producing packaging for meat and sausage products. The enterprise produces multi-layer synthetic heat-shrinkable casing using modern technologies. There are plans to develop new markets for packaging materials in the dairy industry, fish processing, and animal feed packaging. PentoPak products are used by Ukrainians and dozens of companies from 30 countries worldwide. PentoPak production facilities are located near Kyiv.
The state property fund will again try to sell the Bilhorod-Dnistrovsky seaport. What else is listed for privatization this week? During the current week, the State Property Fund (SPFU) plans to sell the Bilhorod-Dnistrovsky Sea trade port, the Rivne radio engineering plant, the Kamian distillery, and the Kholminsky distillery. These auctions will take place until March 21, inclusive, reports the SPFU. A total of 18 auctions are planned for the week in the Sumy, Kirovohrad, Ivano-Frankivsk, Zhytomyr, Cherkasy, Volyn, Dnipropetrovsk, Odesa, Rivne, Khmelnytskyi, and Chernihiv regions. The Bilhorod-Dnistrovsky Port is offered for ₴183.9M ($4.8M). It was planned to be privatized even before the beginning of the full-scale war. The port operated with losses of ₴24-29M per year and did not even earn enough to pay workers’ salaries. The Rivne radio engineering plant is sold in the form of a state package of shares of 50% + 1 share of authorized capital with a starting price of ₴60.8M. The Kholminsky Distillery is being sold for ₴15.4M.
Several world-famous companies are interested in privatizing two hotels in the center of Kyiv. According to Vitaliy Koval, head of the State Property Fund, state-owned hotels in the center of the capital can become flagships for privatization in 2024. “We see a lively market interest in the Kozatskyi and Ukraina Hotels, located in the heart of the capital. The State Property Fund has already determined the starting price for a four-star Ukraine Hotel at ₴1.34B without VAT. The Hotel Kozatskyi has two stars, but its unique location allows it to be at least four stars," said Koval. He refused to name the companies interested in purchasing hotels so as not to harm the privatization process. "I can say only one thing: several world-renowned networks are already asking for technical specifications, clarifying the details. They are interested in these objects, we see it. There are already three networks, to be exact," said Koval.
56 UKRAINE Country Report April 2024 www.intellinews.com