Ukraine’s State Property Fund plans to privatize confiscated assets of Russian stakeholders in 2023

29 March, 06:52 PM
Head of the State Property Fund, Rustem Umerov (Photo:Рустем Умєров / Facebook)

Head of the State Property Fund, Rustem Umerov (Photo:Рустем Умєров / Facebook)

The State Property Fund of Ukraine (SPFU) plans to privatize assets confiscated from their Russian stakeholders in Q2 or Q3 2023, SPFU head Rustem Umerov said in an interview with Forbes Ukraine on March 29.

The Mykolayiv Alumina Plant, previously owned by Russian businessman Oleg Deripaska, as well as a share of the Ocean Plaza shopping mall in Kyiv previously owned by Russian oligarch Arkady Rotenberg, have not yet legally reached the fund.

As soon as the SPFU receives them under management, they will be immediately put up for auction.

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In general, it takes 60-90 days to prepare an object for privatization, so it is quite realistic to start the process this year, said Umerov.

As for the potential value of the Mykolayiv Alumina Plant, Umerov said that the assets for privatization are listed at book value, and then the market determines the final price.

“It’s difficult to say its book value now,” the official said.

“We must see what is left of resources, debts, analyze accounting and financial statements. Currently, the plant is not working, we’ll look for a way to make it work.”

The Ocean Plaza shopping mall, which advisor to the SPFU head, Oleksandr Nosachenko, has recently estimated at least at $160 million, still needs legal, technical, and financial audits.

Umerov noted that, in his opinion, the advisor’s estimate is “close to the truth, but the final price will be determined by the market.”

“As for the terms – the same as with the Mykolayiv enterprise: 90 days for the audit and we can announce the auction,” he said.

“The main thing is for this asset to reach us legally.”

To date, the state owns 66.65% of the shopping mall’s shares. Ukrainian businessmen Vasyl Khmelnytskyi and Andriy Ivanov also own a share of the asset.

SPFU lawyers will hold consultations with Ukrainian owners of assets and discuss their proposals regarding the situation, Umerov added.

The High Anti-Corruption Court on March 20 approved the seizure of Kyiv’s Ocean Plaza shopping mall from Russian oligarch Arkady Rotenberg, a close friend of Russian dictator Vladimir Putin.

David Arakhamiya, head of the Servant of the People parliamentary faction, announced the confiscation of Ocean Plaza shares from the Rotenberg brothers at the end of February 2023.

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