Business news from Ukraine

Business news from Ukraine

Kholminsky distillery sold at auction for UAH 45 mln

The State Property Fund (SPF) of Ukraine has sold Kholminsky distillery in Chernihiv region for UAH 45 million at an auction in the system “Prozorro.Sales”, which is 2.9 times higher than the starting price, said the chairman of the SPF Vitaliy Koval.

“Three participants competed for the object. Its cost has increased in 2.9 times of the original”, – he wrote in Facebook and added that the FGI will continue denationalization of the alcohol industry.

The head of the FGI specified that the funds transferred by the winner of the auction to the state budget will be directed to the financing of the Defense forces of Ukraine.

According to Prozorro.Sales, the winner of the auction was Terminal Frost LLC.

According to the online resource youcontrol.com.ua, the company was registered in 2017 in Kiev. Specializes in non-specialized wholesale trade, providing financial and consulting services, renting its own or leased property. The authorized capital of the enterprise is 155 thousand UAH. The beneficiary of the enterprise is Anastasia Bashtova.

It is stated that the postal operator or express carrier must submit an additional register of international mail or express shipments if the goods are not subject to export duty or are not subject to restrictions provided for in Article 197 of the Customs Code.

Head of the Parliamentary Committee on Finance, Tax and Customs Policy Daniil Getmantsev in Telegram expressed hope that these changes will help to reduce business costs and speed up logistics.

As reported, the Verkhovna Rada adopted as a whole the bill No. 9456 on amendments to the Customs Code of Ukraine regarding customs clearance of biomethane.

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State Property Fund is preparing to sell Ukraina Hotel and Ocean Plaza shopping center

The State Property Fund has completed the valuation of the Ukraina Hotel and plans to hold an auction for its privatization in late summer 2024, and for the Ocean Plaza shopping mall in the second half of the year, Vitaliy Koval, the head of the SPF, said in an interview with Mind.

“We have already completed the valuation of the hotel, which amounts to UAH 1.039 billion excluding VAT. We are now preparing for the auction, which we plan to hold in late summer, maybe even in the third quarter,” he said.

According to the SPF head, foreign operators are interested in privatizing the Ukraina Hotel, in particular, as they are considering upgrading it to a five-star hotel.

In addition, according to him, more than three bidders are considering participation in the auction for the privatization of the Ocean Plaza shopping center, and the Fund has received inquiries from investment funds and development companies.

As reported, the Ukraina Hotel is a state-owned enterprise managed by the SPF. It has 363 rooms, six conference halls, and meeting rooms. There is a parking lot for 80 cars and a shelter with a separate auditorium for 50 people. At the same time, the hotel’s debt is over UAH 45 million.

Ocean Plaza was opened in Kyiv in December 2012 at 176 Antonovycha Street. Its total area is 165 thousand square meters. Investments in the facility amounted to approximately $300 million. UDP 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 Real Estate in 2012. Later, in 2019, Ukrainian businessman Vasyl Khmelnytsky indirectly acquired a 33.5% stake in Ocean Plaza through UPD Holdings Limited. In 2021, he sold his stake to entrepreneur Andriy Ivanov. The deal was finalized in the summer of 2023.

In June 2023, the Cabinet of Ministers transferred a 66.65% stake in the authorized capital of Lybid Investment Union LLC, which owns the mall, to the SPFU for further privatization.

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Another Ukrainian distillery is put up for auction

The State Property Fund (SPF) of Ukraine has announced a privatization auction for the sale of the Gannopolskiy distillery (Khmelnytskyi region) on January 25, the press service of the agency said.

According to the message, the asset consists of 48 real estate objects located on a land plot with a total area of 16.11 hectares. The main of them are the main building with the area of 1250.9 sq. m, vodka bottling shop and cleaning department – 1392.4 sq. m, stables – 529 sq. m, malt house – 1171.1 sq. m, grain warehouse – 1198 sq. m and others.

The starting price of the object is UAH 3.8 mln.

You can register for the auction until January 24.

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State Property Fund of Ukraine launches Land Bank website

The State Property Fund of Ukraine (SPF) has presented a website dedicated to the launch of the Land Bank with the publication of answers to the main questions on land relations, as well as a map with the lands that will be accumulated in the Land Bank.

According to the FGI website, the law launching a transparent lease of state-owned agricultural land through online auctions was adopted by the Verkhovna Rada on July 27, obliging the Fund to create a Land Bank.

“The main goal is to fight corruption on state-owned agricultural land. Every year, unscrupulous managers of state-owned agribusinesses leased state land to businesses under “gray” schemes. In their pockets got tens of millions of dollars of cash, and the state – losses,” – quoted the press service of the head of the FGI Rustem Umerov.

It recalled that about 700 thousand hectares of state farmland for years did not bring funds for the budget and citizens. FGI intends to change this by accumulating information about them in the Land Bank and will subsequently lease through open online auctions on the electronic platform Prozorro.

“The new investment product will allow each Ukrainian to start their own business, transparently and openly leasing a land plot through an online auction “, – emphasized in the FGI.

According to preliminary calculations, the expected economic effect from the introduction of transparent land lease will be up to 7 billion UAH per year.

The first auctions will be held in 2024.

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Most state enterprises of Ukraine will be transferred to management of State Property Fund

The government’s main strategy remains to minimize the state’s share in the economy while maintaining state control in sectors that are strategic and important for Ukraine’s security, Prime Minister Denis Shmygal said at a meeting with First Deputy Prime Minister – Economy Minister Yulia Sviridenko and Head of the State Property Fund Rustem Umerov.
“There are many plans for this year. We continue small-scale privatization and resume large-scale privatization. We are transferring the majority of state enterprises to the management of the State Property Fund. We are developing a strategy for the management of enterprises confiscated from sub-sanctioned persons,” said Shmygal, as the press service of the government reports.
Also, according to Prime Minister, the State Property Fund has been instructed to introduce the OECD principles in the management of state-owned enterprises.
Last year privatization brought 1.7 billion UAH to the state budget. After the change of management, the economic effect of the IGF’s work amounted to more than 5bn hryvnias.

State Property Fund of Ukraine is ready to resume large-scale privatization

The State Property Fund of Ukraine (SPF) is ready to resume large-scale privatization in Ukraine despite the war, but first wants to analyze their condition, Rustem Umerov, newly appointed head of the Fund, said.
“So far, we want to preliminarily analyze the situation at the enterprises. After that, we plan to discuss with the government which of them we can now put up for sale,” he said in an interview with Forbes Ukraine, which was published on Tuesday.
Among the enterprises that could be put up for large-scale privatization, the head of the State Property Fund named the Odessa Portside Plant, the United Mining and Chemical Company (OGCC) and the Zaporozhye Titanium and Magnesium Combine (ZTMK), adding that he also intends to wait for the resumption of their work.
Answering a question about the revision of privatization in previous years, the new head of the State Property Fund said that he was not in favor of such an approach. “We must move on without looking back at the past,” he said.
Umerov added that an analysis of about 800 enterprises that the Fund recently received by government decision is also being carried out.
According to him, the presence among them located in the temporarily occupied territories is explained by the fact that one of the functions of the State Property Fund will be to assess the losses of Ukraine from the occupation, including the loss of these enterprises. “After the assessment, we will file lawsuits in international courts demanding compensation for the damage,” the head of the department said.
He also confirmed that the government is discussing the idea of ​​transferring the arrested assets belonging to the Russians to the Fund. “After analyzing their financial situation, we will put them up for privatization. We will transfer the proceeds to the government, which will send them to the country’s defense,” Umerov explained the idea.
Among other initiatives, he named an inventory of all leased areas, discussion of the possibility of creating a land bank together with the Ministry of Agrarian Policy and Food, as well as work on the creation of a real estate agency – Real Estate Investment Trust.
Umerov also recalled plans to create a Sovereign Fund, to which enterprises of strategically important sectors for the state will be transferred: energy and critical transport infrastructure, as well as enterprises with a unique market position and licenses for the extraction of natural resources.

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