The winner of the privatisation tender paid UAH 3.94 billion to the state budget of Ukraine for 100% of the shares of JSC United Mining and Chemical Company. This brings the total privatisation proceeds for 2024 to UAH 9.26 billion. In addition, UAH 1.029 billion of VAT was received. Thus, the total economic effect of privatisation is over UAH 10 billion.

“The Government’s decision to launch a large-scale privatisation was timely and appropriate. Another facility has received new owners in a transparent and open tender. The money for the purchase of UMCC has already been paid to the budget. The new owner will have to invest at least UAH 400 million in the modernisation of the company under the terms of privatisation. Thus, since the beginning of the year, privatisation revenues have already exceeded the target by more than 2 times and amount to UAH 9.26 billion,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

Under the terms of the tender, the buyer of UMCC must:

• maintain the core business of the enterprise;
• invest at least UAH 400 million in technical re-equipment and modernisation;
• repay overdue accounts payable in the amount of UAH 609 million;
• provide social guarantees to employees in accordance with the law and not dismiss them for at least six months;
• implement a number of social, environmental and technical measures.

The starting price of the lot was UAH 3 billion 899 million. The winner offered UAH 39 million more than the starting price.

UMCC is the largest producer of titanium raw materials in Ukraine. The company includes two plants: Vilnohirsk Mining and Metallurgical Plant in Dnipropetrovsk region and Irshansk Mining and Processing Plant in Zhytomyr region.

The next online auction of the large-scale privatisation will be held on 19 December. A 100% state-owned stake in the nationalised building materials producer Aeroc LLC will be put up for sale with a starting price of UAH 965.3 million.

On 18 September, Ukraine’s first online large-scale privatisation auction was held in the Prozorro.Sale system – the Ukraina Hotel was sold for over UAH 2.5 billion against a starting price of UAH 1.05 billion.