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for leases of state-owned agricultural land, said the head of the fund, Vitaliy Koval. As he clarified, large-scale privatization involves putting assets on the market, such as the Odesa Port Plant, Centrenergo, United Mining and Chemical Company, Ukrainian Energy Machines, Elektrovajmash, and Sumikhimprom. “Currently, small-scale privatization is taking place, and soon we plan to put large-scale privatization objects on the market with a starting value of ₴250M," announced Koval. Also, in 2024, auctions of the rights to lease state-owned agricultural land will begin. In addition, the SPFU will function as the largest owner of brownfield assets, representing inactive or abandoned enterprises with connected communications that are actively included in the privatization process.
Since the beginning of the year, the State Property Fund of Ukraine has earned more than UAH6.2bn for the state. The main sources of income were privatization, leasing, and management of state-owned enterprises. Privatization provided the largest revenues.
A Mykolaiv company bought Cherkasy Azot for ₴37.5M; what other assets can be privatized by Ukrainian business? During the auction of Azot enterprise, the price of the lot increased from ₴30.99M to ₴37.5M. Logistics company Liquid Cargo Terminal offered the winning bid for the asset. Meanwhile, on December 14, the Hannopil distillery will again be put up for auction, starting at ₴3.82M, with its current debts totaling ₴15.29M. Also, on December 12there will be another attempt to sell at auction the single property complex of the state enterprise Zhytomyrtorf for ₴7.6M. The company specializes in peat extraction. In addition, the State Property Fund is selling a property complex of the state-owned enterprise Brailivsky Juice Plant, with a starting price of ₴0.333M and company debt of ₴7.43M. All the enterprise’s real estate has been seized, and 16 executive proceedings have been opened against it. It is also worth noting that in Poltava, the owner of the Everest chain is selling the Bulanovo hotel and restaurant complex with a brewery in the village of Bulanovo and an office building for ₴220M.
During November 20-24, the Deposit Guarantee Fund plans to sell the assets of seven liquidated banks. The initial selling price of all lots is ₴947.7M. These banks are Megabank, Capital, Bank Sich, MR Bank, Ibox Bank, Prominvestbank, and Bank Forward.
The State Property Fund presents a plan to transfer state agricultural lands to Ukraine’s Land Bank. According to the SPFU, state lands will be consolidated in several stages.
● First, agricultural land of state-owned enterprises already in the bankruptcy procedure at the liquidation stage will be transferred to the land bank.
● In the second stage, properties that do not have any encumbrances or restrictions will be transferred.
● In the third and fourth stages, properties belonging to state-owned enterprises that have problems and require an individual approach to be transferred.
The first two rounds of land assets can be transferred to the Land Bank within two to three months. In parallel, the SPFU will work on the draft regulation for the Land Bank, which will become a strategic asset that will remain in state ownership and later be transferred to the Ukrainian Sovereign Fund. According to the Office of the President, the state has more than 500,000 hectares of agricultural land, but the exact figure will be known only after an inventory. The state will receive more than ₴3B from this land.
76 UKRAINE Country Report December 2023 www.intellinews.com