The State Property Fund has put a distillery in Hnizdychiv up for auction: what is known
14 April 08:57
The privatization of yet another state-owned industrial asset has begun in the Lviv region. The State Property Fund has put the single property complex of the state-owned enterprise “Gnizdychiv State Distillery” up for auction with a starting price of 3,259,800 UAH, excluding VAT. The corresponding announcement was published on the Prozorro.Sale portal, reports "Komersant Ukrainian"
The property in question is located in the village of Hnizdychiv, Stryi District, Lviv Region, at 4 Konovaltsia Street. The plant has effectively been out of operation for many years and, according to available information, has been idle since 2010.
What is being sold at auction
The single property complex “Hnizdychiv State Distillery” has been put up for auction. The lot includes:
- an administrative building;
- production buildings;
- a compressor room;
- a transformer substation;
- equipment room;
- an unfinished complex comprising a mill, a bakery, and a store.
The unfinished complex is 45% complete.
Thus, the buyer receives not only individual buildings but a fully-fledged industrial complex with additional infrastructure that can be utilized after restoration or repurposing.
What is the starting price for the distillery?
The starting price for the sale of the property is 3,259,800 UAH excluding VAT. VAT will be added to the final amount based on the auction results.
The minimum bid increment during the auction is set at 32,598 UAH, which is 1% of the starting price.
The security deposit for participating in the auction is 651,960 UAH, or 20% of the starting price.
When will the auction take place
The auction for the sale of the Hnizdychiv State Distillery is scheduled for May 6, 2026, at 12:55 p.m.
Bids will be accepted until May 5, 2026, at 8:00 PM.
The submission of bids has been open since April 10, 2026.
Auction format
The auction will be conducted as a three-round English auction.
This means that participants first submit sealed-bid offers without seeing their competitors’ bids. The system then ranks them from lowest to highest, and the participant with the highest sealed bid receives the right to the final move in each round.
If at least two participants register for the auction, they will compete against each other over three rounds, each lasting three minutes. In certain cases, a single registered participant may purchase the lot.
What about the land under the plant
The enterprise is located on a land plot of over 9 hectares. However, the land is not included in the sale.
The new owner will decide independently on the future lease or use of this plot after acquiring the property complex.
What is the current state of the enterprise
The plant requires significant investment to resume operations. Despite its existing territorial and infrastructural potential, the facility has effectively been out of operation for a long time.
According to financial reports, as of the end of last year, only one person was officially employed at the enterprise.
This indicates that operations have effectively ceased and that a complete restart or a new business plan is needed for the facility.
What debts are transferred to the new owner
Along with the assets, the buyer assumes the company’s debt obligations. As of December 31, the total debt amounted to UAH 1.68 million.
The debt structure is as follows:
- 840,000 UAH — wage arrears;
- 442,500 UAH — debts to the state budget;
- 396,000 UAH — insurance debts.
Under the terms of the sale, the new owner is obligated to settle the wage arrears and debts to the budget within six months of acquiring ownership.
Where to view the plant
Potential bidders can inspect the privatization object directly at its location in Hnizdychiv.
Viewings are available on business days:
- from 8:00 AM to 5:00 PM;
- on Fridays — from 8:00 AM to 4:00 PM.
The contact person for inspection inquiries is the acting director of the enterprise, Yosyp Hnatyshyn.
Who is organizing the auction
The auction is organized by the Regional Branch of the State Property Fund of Ukraine for Lviv, Zakarpattia, and Volyn Oblasts.
This branch is responsible for conducting the privatization of this property through the state electronic sales system.
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