The Rivne Automobile Repair Plant, valued at 2.5 million UAH, has been returned to the state. This decision was made by the court due to the buyer’s failure to meet the privatization conditions, particularly the non-payment of salary debts and tax obligations over a six-month period.
This is reported by Finway
At the time of privatization, the company’s debts exceeded 17 million UAH to the budget and 8 million UAH to employees. After the sale, these amounts increased to 18.8 million UAH and 11.4 million UAH, respectively, while employees were dismissed for various reasons.
Reasons for the Return of the Plant
The company “KSM,” which became the buyer, acknowledged partial non-fulfillment of its obligations. The company explained this by the state of military emergency and inaccurate information about the object. In particular, the announcement mentioned the right of permanent use of 13 hectares of land, which turned out to be inaccessible, although the company continued to declare tax obligations regarding land tax. According to KSM representatives, this made it impossible to properly assess the obligations.
Current State of the Plant
Today, the property complex of the plant has been returned to state ownership and registered under the State Property Fund. The Rivne Automobile Repair Plant is an important enterprise of Ukraine’s defense-industrial complex, which was engaged in the repair and modernization of automotive and special equipment for the Ministry of Defense.