Ukraine Prepares to Sell Odesa Portside Plant and Mykolaiv Alumina Plant to Foreign Investors for Security Assurance

The State Property Fund of Ukraine is seeking strategic investors for assets that are under constant threat from Russian shelling. The main goal is to attract partners with a strong international reputation, whose state status can serve as an additional guarantee of the safety of such assets.

This is reported by AgroReview

Potential Investors — USA and India

According to the head of the SPFU, Dmytro Natalukha, the focus is primarily on the Odesa Portside Plant (OPZ) and the Mykolaiv Alumina Plant. The biggest challenge for potential buyers is the military risks, which outweigh even significant debt obligations. Natalukha emphasized that the $193 million debt of OPZ to Ostchem does not scare investors as much as the plant’s location in Odesa Oblast.

“Selling OPZ to restore fertilizer production is a matter of who can afford to pay a high price for gas or gas transportation,” said Natalukha.

Regarding the Mykolaiv Alumina Plant, Natalukha expressed the opinion that serious buyers of risky assets could come from the USA or India. He noted that the assets may likely need to be sold at a lower price; however, integration into global supply chains could provide significant benefits for Ukraine in the future.

Investment Council and Involvement of International Organizations

As of now, a pool of investors for these assets has not been formed. To activate the search for partners, an investment council is planned to be established at the SPFU by the end of February. Its members may include representatives of international financial institutions such as the EBRD, IFC, DFC, as well as participants from Ukrainian business associations.