Government approves price and terms of privatization of Ukrbud and Sumykhimprom

The Cabinet of Ministers has approved the price and terms of privatization of the Ukrbud construction company and the largest producer of phosphate fertilizers, the Sumykhimprom state enterprise (Sumy).

The Ministry of Economy has said this in a statement, the Ukrainian News agency reports.

"The block of shares of the State Joint-Stock Company "Construction Company "Ukrbud" will be put up for privatization with a starting price of UAH 262,646,000. The starting price of the block of shares of the public joint-stock company "Sumykhimprom" is UAH 1,158,050,202. Both assets are included in the list of large-scale privatization. Their sale will take place through an electronic auction in the Prozorro.Sales system," the report says.

First Deputy Minister of Economy Oleksii Sobolev noted that the government is consistently moving towards reducing the role of the state in the economy and continues large-scale privatization.

"According to the privatization terms approved by the government, the new owner of Sumykhimprom will be obliged to invest at least UAH 150 million in the modernization and technical re-equipment of the enterprise," Sobolev emphasized.

According to the approved terms, the new owners of the shares of Ukrbud and Sumykhimprom must:

preserve the profile of the enterprises' activities;

within 6 months, repay debts on wages and to the budget;

liquidate Sumykhimprom’s debts to the Pension Fund;

repay overdue accounts payable;

guarantee compliance with the labor rights of employees and prevent their dismissal during the first six months;

direct dividends to the state budget based on the results of operations in 2024 and until the sale in 2025.

The Ministry of Economy notes that in 2024, the large-scale privatization auction brought the budget almost UAH 6.5 billion, the most expensive privatization lot was the United Mining and Chemical Company - the winner paid almost UAH 3.9 billion for it.

As the Ukrainian News agency earlier reported, in September 2024, the Cabinet of Ministers included 100% of the shares of the Ukrbud construction company in the list of large-scale privatization objects.

The Ukrbud construction company is one of the companies related to another legal entity - "Ukrainian State Construction Corporation "Ukrbud". The president of the Ukrbud state corporation during 2010-2016 was former member of the Verkhovna Rada Maksym Mykytas; he built his own private construction business using the brand of the state company.

At the same time, the Ukrbud construction company, transferred for privatization, was mainly engaged in industrial construction.

PJSC Sumykhimprom is one of the largest domestic enterprises producing complex mineral fertilizers, titanium dioxide, sulfuric acid and other types of inorganic chemistry products.

According to the State Property Fund (SPF), the state budget of Ukraine in 2024 received UAH 11.1 billion from privatization.