Ukraine’s State Property Fund announced an auction to privatize the state-owned Radiorele plant in Kharkiv — the country’s largest switching equipment manufacturer, the fund said on Feb. 3.
Kyiv has looked to privatize its long list of state-owned assets as a way to shore up its wartime budget. State-run assets are known to be a drain on the state’s resources and have at times been feeding grounds for corruption.
Ukraine’s government included Hr 3.2 billion ($76 million) in privatization proceeds in the 2025 budget, which envisions auctioning off both small and large-scale assets.
Radiorele produces low-current, miniature, electromagnetic switches, and relays, which are used to control voltage, current, and temperature in electrical systems. The plant has been put up for auction in the past, but has so far been unable to attract a buyer.
The auction, which is for a 100% stake in the plant, will be held on Feb. 4. Its starting price is Hr 234.4 million ($5.6 million), which includes debts for the last six months.
As of Sept. 30, 2024, the enterprise’s debt was Hr 2.4 million ($57,339), including wage arrears of Hr 755,000 ($17,933) and arrears to Ukraine’s budget of Hr 697,000 ($16,555).
The new owner must commit to keeping all 66 of the firm's associates employed for the next six months, the fund said.
Ukraine privatized several high-profile state-owned assets at the end of last year, including the iconic Hotel Ukraina located in downtown Kyiv and the titanium producer giant UMCC-Titanium.
Businessman Maksym Krippa purchased Hotel Ukraina on Sept. 18 for $60 million. UMCC-Titanium was sold to Cremin Ukraine on Oct. 9 for $96 million.
Despite a couple of recent big ticket privatization sales, the country's efforts to offload its assets has been slow to take over the years. Announced auctions have failed due to the absence of bidders.
After Kirppa's company Ola Fine paid for Hotel Ukraina, the fund's revenue plan for 2024 through privatizations exceeded its goal for 2024 for the first time in many years.
Elsa Court
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