The State Property Fund sold a confiscated stake in “Kirovograd Ore Management”
3 November 18:12
On November 3, an online auction was held to sell 52.7596% of the authorized capital of JSC “Kirovograd Ore Management, ” located in the village of Katerynivka in the Kirovograd region. The company was confiscated as state revenue pursuant to a ruling by the High Anti-Corruption Court. This was reported by "Komersant Ukrainian", citing the press service of the State Property Fund of Ukraine .
How much was the stake in “Kirovograd Ore Management” sold for?
It is reported that two bidders competed for the right to acquire a controlling stake in the company. The starting price of the lot was 18,042,905 hryvnias, and the winning bid reached 21,000,000 hryvnias, increasing the final value of the asset by 2,957,095 hryvnias.
Kirovograd Ore Management specializes in the extraction of sand, gravel, clay, and kaolin. Kaolin is used in the production of refractory products, construction ceramics, porcelain, earthenware, cement, and other industrial products.
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What assets will the new owner receive?
The auction winner will acquire a controlling stake in the company, whose assets include 37 real estate properties with a total area of 7,176.16 square meters, as well as 21 land plots with a total area of 135.79 hectares.
In addition, the company operates a production facility for the extraction of secondary kaolin, which is used in various industrial sectors.
The State Property Fund notes that the acquisition of this asset will enable the new owner to develop the company’s production capacity and expand the range of applications for its raw material base.
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When the winning bidder must pay for the asset
It is reported that after the auction concludes, the winning bidder is required to pay the offered amount within 25 business days from the day following the date the protocol on the results of the electronic auction is drawn up.
Proceeds from the sale of sanctioned assets are directed to the Fund for the Elimination of the Consequences of Russia’s Armed Aggression and are to be used for Ukraine’s recovery. The State Property Fund of Ukraine emphasizes that the sale of such assets creates opportunities to attract investment, develop production, and make more efficient use of state property.
How the Russian businessman’s shares became state property
The corporate rights had previously been forfeited to the state pursuant to a ruling by the High Anti-Corruption Court in the case involving Russian businessman Sergei Kabargin.
In June 2023, the Security Service of Ukraine announced that it had placed Russian businessman Sergei Kabargin under suspicion. According to the investigation, he used the company “Kirovograd Ore Management” JSC, which he controlled, to extract and export refractory clay and kaolin, which were supplied through third-party companies to subsidiaries of the Russian state-owned giants “Rosatom” and “Lukoil.” The taxes and profits generated through this scheme were channeled into the Russian Federation’s budget to finance armed aggression.
Kabargin was notified of his status as a suspect under Part 4 of Article 110-2 of the Criminal Code of Ukraine—financing actions committed with the aim of forcibly altering the territory or state border of Ukraine.
In November 2025, the High Anti-Corruption Court ruled to forfeit to the state a portion of the company’s shares, which, according to the court’s findings, were effectively controlled by a Russian businessman associated with them.
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