The Cabinet of Ministers of Ukraine has included a 100% state share in the authorized capital of Aerok LLC and a 100% state share in the authorized capital of Demurinsky Mining and Processing Plant LLC in the list of large-scale privatization objects, UNN reports with reference to the Ministry of Economy.
Details
According to the agency, in the near future the State Property Fund of Ukraine will hold auction commissions to propose starting prices and terms of sale of these assets. And after the Cabinet of Ministers of Ukraine approves the starting prices and terms of sale, the State Property Fund will put Aeroc and Demurinsky GOK up for privatization auctions.
"In the context of the ongoing war, the sale of sanctioned assets is extremely important for our economy. The money received from their sale will be directed to the fund for the restoration of destroyed property as a result of Russian aggression. This not only provides the necessary financial resources for reconstruction, but also emphasizes our determination to use all possible tools to support the economy and restore the country," said Yulia Svyrydenko, First Vice Prime Minister of Ukraine and Minister of Economy of Ukraine.
Aeroc LLC is one of the leading producers of aerated concrete products in Ukraine, with production facilities in Kyiv and Lviv regions. The company was transferred to the management of the SPFU by the decision of the High Anti-Corruption Court in 2023. Prior to that, Aeroc was owned by the sanctioned Russian oligarch Andrey Molchanov through LSR Group (Russia). According to the company's financial report for 2023, the value of its assets is UAH 947 million.
Demurinsky Mining and Processing Plant LLC is one of the leading mining and processing companies in Ukraine, which has been developing the Vovchanske complex alluvial titanium-zircon deposit in Dnipropetrovska oblast since 2006. It was transferred to the SPFU by the decision of the High Anti-Corruption Court in 2023. Before that, it belonged to Russian billionaire Mikhail Shelkov. According to the company's financial report for 2023, the value of its assets is UAH 654 million.
"These are very promising enterprises. The State Property Fund has done everything necessary to prepare them for privatization: The Fund transferred to the authorized capital the real and movable property of Demurinsky GOK, which was seized by the HACC decisions separately from corporate rights, and successfully lifted the arrests on Aerok's corporate rights. The next step is to sell these enterprises in the most transparent and competitive manner through open online auctions. The nationalized assets should find new effective owners who will develop production, create new jobs, and give impetus to the development of the territories and the reconstruction of Ukraine. And the money received from their privatization will be used to rebuild our country right now," said Vitaliy Koval, Head of the SPFU.
Recall
Large-scale privatization is the sale of state-owned assets with a book value of more than UAH 250 million. In the previous months, the State Property Fund has already held auction commissions for the sale of the Hotel Ukraina, the United Mining and Chemical Company, and the state share in the authorized capital of the Investment Union Lybid LLC (Ocean Plaza shopping center). Auctions for the sale of these assets will be announced after the Cabinet of Ministers approves the starting prices and terms of sale. All auctions will be held in the state electronic system Prozorro.Sale. The proceeds from the privatization of state-owned enterprises will go to the state budget of Ukraine, and the proceeds from the privatization of nationalized assets will go to the fund for liquidation of the consequences of armed aggression.