Despite the difficulties, russian sanctioned assets in Ukraine will be sold at auctions – State Property Fund of Ukraine

On August 10, the first auction for the sale of sanctioned property was not held due to a lack of potential buyers. At this auction, the State Property Fund of Ukraine (SPFU) intended to sell the agricultural company "Investagro".

However, the Fund continues to prepare russian assets for privatization. A new auction will be announced soon. Our goal is to ensure that all property seized from russian oligarchs and individuals who support the war works for victory and strengthens our economy. 

Why was the first auction not held?

The starting price of the enterprise was UAH 55 million, which is its book value. However, the non-current assets of the enterprise are only UAH 3.9 million. The major part of the book value, UAH 21 million, is debtor indebtedness, which means the funds that counterparties owe to the entrepreneur. In addition to this, the investor must repay UAH 17.2 million of current debts.

"Investagro" previously belonged to russian billionaire and shareholder of the titanium corporation VSMPO-Avisma, Mikhail Shelkov. This corporation supplied titanium products to enterprises in the military-defense industry of the rf, particularly within contracts for fulfilling the state defense order.

Due to the fact that the russian billionaire supported the armed aggression of russia against Ukraine, in winter 2023, the High Anti-Corruption Court of Ukraine imposed sanctions against him, confiscating his Ukrainian assets (100% of LLC "Investagro", 100% of LLC "VSMPO TITAN Ukraine", 100% of LLC "Demurinsky Mining and Processing Plant", 100% of LLC "Tai-Minerals", etc.).

In February, the Cabinet of Ministers transferred the assets of Mikhail Shelkov to the management of the Fund, and in July, the SPFU announced the first privatization auction for the sale of these assets.