Business news from Ukraine

Vasyl Khmelnitsky sold one third of Ocean Plaza shopping mall to Andrey Ivanov

The sale of a share (33.35%) of the Ocean Plaza shopping mall to Andrey Ivanov has been officially finalized, businessman Vasyl Khmelnitsky said.
“Last week were officially finalized all transactions on the sale of my share of Ocean Plaza shopping mall to my long-time partner Andrei Ivanov,” – said Khmelnitsky on Facebook.
Ocean Plaza shopping mall was opened in Kiev in December 2012 on Antonovycha Street, 176. Its total area is 165 thousand square meters. m. Investments in the mall amounted to about $300 mln. UDP Company and K.A.N. Development LLC acted as partners in the development of the project.
The mall was sold to Arkady Rotenberg’s Russian TPS-Nedvizhimost in 2012. Later, in 2019, businessman Vasily Khmelnitsky indirectly through UPD Holdings Limited acquired a 33.5% stake in Ocean Plaza shopping mall. In 2021 he sold his stake to entrepreneur Andrei Ivanov, the deal was finalized in the summer of 2023.
“More than three years ago, my partner Vasily Khmelnitsky and I reached an agreement under which I would gradually buy out the development company UDP, whose investments had been under my management for a long time. The agreement to buy out 33.35% of shares of Ocean Plaza shopping mall, which is part of UDP, is a logical continuation of the process”, – commented the owner of the investment company Q Partners Andrey Ivanov to the agency “Interfax-Ukraine”.
As reported, in June 2023, the FGI registered corporate rights to the state share (66.65%) in the shopping mall Ocean Plaza.
“In the public communication of the fund we hear intentions to sell their stake already by the end of this year. As a minority owner, we are fulfilling all the state’s requirements to prepare the company for sale. Our further view on the development of this asset will depend on the results of privatization,” – said Ivanov.
Earlier it was reported that the Cabinet of Ministers on June 9, 2023 adopted an order on the transfer to the FGI share of the authorized capital of LLC “Investment Union “Lybid”, which owns the shopping mall, in the amount of 66.65%. Previously, these corporate rights belonged to Russian sub-sanctioned businessmen Arkady and Igor Rotenberg, but in March 2023, the Supreme Anti-Corruption Court recovered them in favor of the state by its decision.
On March 3, the Ukrainian Justice Ministry filed a lawsuit with the HACC to confiscate the companies that own two-thirds of the Ocean Plaza shopping mall (Kiev), including the Rotenbergs’ assets. Earlier, as part of the criminal proceedings, the arrested corporate rights of the companies for more than 350m hryvnyas were transferred to the National Agency for Identification, Search and Management of Assets Derived from Corruption and Other Crimes.

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EBRD Extends EUR10.6 Million Loan to Khmelnitsky for Purchase of New Trolley Buses

The European Bank for Reconstruction and Development (EBRD) is lending EUR10.6 million to the municipal enterprise (CE) Electrotrans (Khmelnitsky) to finance the purchase of new trolleybuses, as well as equipment for maintenance and diagnostics, according to a press release from the bank.
The EBRD loan is part of a financing package that also includes investment grants from the EU Neighbourhood Investment Platform of up to EUR2.75 million and up to EUR1.7 million from the EBRD’s Special Crisis Response Fund, which receives a contribution from the U.S. government, according to the statement Friday.
The loan and grants will be used to purchase new trolleybuses with remote monitoring systems, spare parts and service equipment.
In turn, the city will cover the cost of installing surveillance cameras inside the trolleybuses and upgrading the trolleybus stops, traction substations and trolleybus depot in the amount of EUR1.5 million.
The press release reminds us that the project is part of the EBRD’s Green Cities program, which Khmelnitsky joined in 2019. The first project, signed in October 2020, concerned improving solid waste management.
“Both projects are extremely important to the residents of Khmelnitsky: the ongoing project – to improve solid waste management – and the project to purchase new trolleybuses. We are glad that we can implement them exactly with the EBRD, our long-term partner, despite the war caused by Russian aggression,” the press service quotes Khmelnitsky Mayor Alexander Simchyshyn, who represented the city in Warsaw at the signing of the agreement with EBRD Managing Director for Sustainable Infrastructure Development Nandita Parshad.
As reported, earlier Simchyshyn noted that up to 45 low-floor trolleybuses are planned to buy with EBRD funds and grants, but at the same time, their number will depend on the cost of trolleybuses, which has increased.
The EBRD press service states that after the full-scale invasion of Ukraine by Russia, Khmelnytskyi faced a large flow of internally displaced persons (IDPs), which put a strain on city services.
The EBRD resumed work with Khmelnitsky in June, adding an IDP needs assessment to the Green City Action Plan, with funding provided by the Swedish government.
The EBRD’s Green Cities program was founded in 2016. Since then, it has helped more than 50 cities on three continents, with more than EUR5 billion spent on its support.
In Ukraine, Lviv, Kiev, Kryvyi Rig, Dnipro, Khmelnitsky joined it, among others.
As it was reported, the EBRD together with donors undertook to provide financing in the amount of EUR3 billion for support of functioning of business and economy in Ukraine in 2022-2023. In 2022, the bank allocated EUR1.7bn to support Ukraine and attracted EUR200m from partner financial institutions.

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Khmelnitsky “Maidan-Vilsky quarry” plans to expand production and mining

Maidan-Vilsky quarry LLC, part of Golden Tile ceramic group, intends to expand production and continue mining.
According to documentation available to the Interfax-Ukraine agency, it is expected to “conduct an environmental impact assessment procedure in connection with the expansion and changes in the planned activities for the construction and subsequent operation of the feldspar feldspar charge magnetic enrichment complex by the wet method.”
The timing of the environmental impact assessment is not disclosed.
Golden Tile Ceramic Group is a vertically integrated group of companies providing a full cycle of production and distribution of ceramic tiles.
According to the official website of the group, its structure includes PrJSC Kharkiv Tile Plant (Kharkiv), Maidan-Vilsky Quarry LLC, Maidan-Vilsky Refractories Plant LLC (both in Khmelnytsky region), PA Shakhtostroy (Donetsk region) and Golden Tile LLC (Kiev, official distributor of the Kharkiv Tile Plant).

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