Business news from Ukraine

Kholminsky distillery in Chernihiv region is up for auction

The State Property Fund (SPF) of Ukraine has put up Kholminsky distillery in Chernihiv region for privatization, the press service of the agency reports.

It is specified that the starting price of the lot is UAH 15.35 million. The auction will be held in the Prozorro.Sale system on March 20, with bids accepted until March 19.

Kholma Distillery is an operating enterprise located in the village of Kholma, Koryukiv district, Chernihiv region. Its main activity is distillation, rectification and mixing of alcoholic beverages.

According to the terms of the sale, the buyer of the distillery is obliged to pay off overdue accounts payable for goods, works and services in the amount of UAH 3.5 million and prevent dismissal of employees for six months.

Construction of Kholminsky distillery began in Soviet times. Since 1951, the company has been accepting potatoes for processing. In the 60s of the last century, the plant held a leading position in the industry. Today, it is in need of reconstruction and investment.

The unified property complex includes 101 registered real estate units: production, warehouse, administrative buildings and structures, transformer substations, artesian wells, grain tanks, railroad tracks, etc. The state-owned enterprise has 16 vehicles and special equipment. The distillery also owns 192 items of movable property, including equipment, furniture, inventory, computer and office equipment, etc.

The total area of the six land plots under the complex is 28.36 hectares.

As of October 1, 2023, a part of the company’s real estate with an area of 727.9 sq m was leased. According to the agreement, the lease term is until May 9, 2024.

In addition, the company leased 26 units of technological equipment and a 0.04-hectare land plot in Novhorod-Siverskyi, Chernihiv region, for a period of 30 years.

At the same time, the state-owned enterprise has an object on its balance sheet that is not subject to privatization: a storage facility (radiation shelter – IF-U) with a total area of 93.1 square meters, built in 1974. It is located separately from other buildings.

According to the Fund, distilleries are among the most popular small-scale privatization assets. Since September 2022, the SPF has sold 14 distilleries and raised UAH 965 million to the state budget, with the average price of each property at auction tripling.

The SPF planned to complete the privatization of the alcohol industry in 2023, for which it was planned to hold online auctions for the sale of 26 distilleries across the country. However, some of them did not take place.

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