Ukraine seizes assets of Boguslayev, Zhevaho, Kolomoisky worth $1 billion – Forbes

8 November 2022, 02:04 PM
Ihor Kolomoisky (Photo:NV)

Ihor Kolomoisky (Photo:NV)

The total value of the assets of the companies Motor Sich, Ukrnafta, Ukrtatnafta, AvtoKrAZ, and Zaporizhtransformator seized by the state is estimated at $956.5 million, Forbes Ukraine wrote on Nov. 8.

Ukraine nationalized the assets of Ukrainian Forbes list members Ihor Kolomoisky, Hennadiy Boholyubov, Kostiantyn Zhevaho, Kostyantyn Hryhoryshyn, and Viacheslav Boguslayev a day earlier.

According to the publication, the most valuable of the alienated assets are those of Ukrnafta and Ukrtatnafta. Kolomoisky and Boholyubov owned about 42% of the shares in Ukrnafta, which is the largest Ukrainian oil producer and the owner of a network of gas stations.

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Before the war, Forbes valued Ukrnafta at almost $1.5 billion, while now it is reckoned to be worth $748 million. The share of Kolomoisky’s Privat Group in the company is estimated at $314 million.

The publication estimates the share of Kolomoisky and Boholyubov in Ukrtatnafta at 28%, the same amount belongs to Kharkiv businessman Oleksandr Yaroslavskyi. Before Russia’s full-scale invasion and war, Forbes estimated the entire asset to be worth $830 million, while now its value has fallen to $178 million.

Motor Sich is currently worth around $27 million ($90 million before the war), and AutoKrAZ of Kostiantyn Zhevaho – $3 million ($10 million before the war).

Forbes estimated the value of Kostiantyn Hryhoryshyn's Zaporizhtransformator at zero due to its large debts. At the same time, the publication notes that the bankrupt company is potentially an attractive asset.

According to Forbes Ukraine, citing a source in the Servant of the People political party, this is only the first wave of nationalizations. In particular, the government may target 40% of the shares of Zhevaho’s Ferrexpo Poltava Mining, which is in litigation over the asset with the previous owners.

It is also noted that the expropriation of assets of Boguslayev, Zhevaho, and Kolomoisky may accelerate the nationalization of Alfa-Bank of Mikhail Fridman, which was expected in December.

It was first reported on Nov. 7 that Motor Sich, Ukrnafta, Ukrtatnafta, AvtoKrAZ, and Zaporizhtransformator would be ​​transferred to state ownership.

The decision to nationalize the companies was based on the law and the order of the Supreme Commander-in-Chief, Ukrainian President Volodymyr Zelenskyy.

The shares of the enterprises were passed into the control of the Ministry of Defense for the duration of martial law. According to Defense Minister Oleksii Reznikov, supervisory boards have been formed to appoint the new management.

It is currently unknown whether the former owners and minority shareholders in these enterprises will be compensated for their loss of the shares.

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