Ukraine Is Preparing a Fire Sale of Large State Enterprises

Translated by Ollie Richardson


The State Property Fund (SPF) begun preparation for the holding of competitions for the sale of 20 large State enterprises. This was reported by the acting head of the State Property Fund Vitaly Trubarov on Facebook.

“The SPF has begun preparation for the holding of competitions for the sale of the Odessa Port Plant, Sumykhimprom, ‘Osnastki’ [in Kramatorsk – ed], 5 regional power companies, and other enterprises. In general, 20 large enterprises with equity stakes from 50 to 100%. Actions for the preparation of competitions include several stages, the most important of which is the development of conditions for competitions and the government’s approval,” reported Trubarov.

As was earlier reported, the State Property Fund estimated PJSC Sumykhimprom at 248.95 million UAH or $8.8 million at the current exchange rate.

In September the vice-chairman of the State Property Fund (SPF) Yury Nikitin, explaining the low estimate of the equity stake in “Sumykhimprom”, said that “the State’s stake is worthless”. The official specified that the enterprise has been in the procedure of bankruptcy for 10 years – it’s main creditor is Dmitry Firtash’s company.

“Sumykhimprom” specialises in the production of titanium dioxide, sulfuric acid, yellow and red iron oxide pigments, complex mineral fertilisers, and a coagulant for water purification. 99.9% of shares of “Sumykhimprom” are owned by the State.

Since the beginning of the restructuring procedure of the enterprise in 2012, the chairman of the board of “Sumykhimprom” Igor Lazakovich, the former senior manager of “Ostchem” of the businessman Dmitry Firtash, was appointed as the managing director of the debtor.

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In December, 2016, the prosecutor’s office reported about the suspicion of the managing director of the restructuring of “Sumykhimprom” Lazakovich of embezzling the property of the enterprise and put him on the wanted list. As the Prosecutor General Yury Lutsenko said back then, Lazakovich ran away to Moscow. Later, thanks to the decisions of the courts, Lazakovich continued to fulfil his duties as the managing director of the restructuring of “Sumykhimprom”, and returned to Ukraine.

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