The State Property Fund of Ukraine is considering the possibility of selling assets that are under constant threat from Russian shelling to strategic investors with a strong international reputation. According to the head of the SPFU, Dmytro Natalukha, this primarily concerns the Odesa Portside Plant (OPZ) and the Mykolaiv Alumina Plant, which are located in frontline regions.
This is reported by Finway
Investors with ‘Strong Flags’ and Security Guarantees
According to Natalukha, the selection of potential buyers is focused on investors whose state status and international authority can serve as additional security guarantees for the enterprises themselves. The main issue for OPZ, he stated, lies in the military risks that deter investors even more than the significant debt to Ostchem amounting to approximately $193 million. The plant’s location in Odesa region amplifies these concerns.
“The sale of OPZ for the restoration of fertilizer production is a matter of who can afford to pay a high price for gas or gas transportation,” said Natalukha.
Potential Buyers and Prospects for Integration into the Global Market
A similar situation is observed regarding the Mykolaiv Alumina Plant. The head of the SPFU suggests that these risky assets may attract interest from investors from the USA or India. At the same time, Natalukha acknowledged that the sale of such facilities might occur at a lower price; however, in the long run, the state will benefit from integration into global production chains and expanding cooperation with major international players.
Currently, a pool of potential investors has not yet been established. However, by the end of February, the SPFU plans to establish an investment council under the fund. Its members may include representatives from leading international financial institutions such as the EBRD, IFC, DFC, as well as Ukrainian business associations. This is expected to be an important step in attracting strategic investors and finding optimal solutions for the future of state assets.