Privatisation revenues rise to UAH 5.7 billion in 2024 after sale of Ukraina Hotel: Yuliia Svyrydenko

The winner of the auction for the privatisation of the Ukraina Hotel paid UAH 2.5 billion to the state budget. Also, UAH 502 million in VAT was paid. In total, the Ukrainian budget received over UAH 3 billion.

“The first large-scale privatisation object has acquired new owners, which means it has prospects for additional investment and development. The successful auction resulted in a 2.4-fold increase in the starting price. The system ensures equal access to bidding, the state sells the facility at a market price, and the process is fully understandable and public. Since the beginning of the year, the state budget has received a total of UAH 5.7 billion from privatisation. This is already UAH 1.7 billion more than the revenues planned for 2024,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

According to the terms of sale approved by the Government, the buyer of the Ukraina Hotel must maintain the core business of the company, pay off salary and budget arrears within six months, and repay overdue accounts payable.

As of the end of March, Ukraina Hotel’s wage arrears amounted to UAH 3.9 million, budget arrears were UAH 10.8 million, and overdue accounts payable were UAH 21 million. In addition, the buyer must provide social guarantees to employees in accordance with the law and cannot dismiss employees for six months.

As a reminder, the auction for the sale of the Ukraina Hotel was held in the Prozorro.Sale system on 18 September. The next large-scale privatisation auction is scheduled for 19 December 2024: Aeroc LLC will be put up for sale with a starting price of UAH 965.3 million.