A former asset of the Russian Federation goes into business: the state has put Vinnytsapobutkhim up for auction
30 May 17:45
On May 30, 2025, the Cabinet of Ministers of Ukraine decided to start selling the state-owned stake in VinnytsiaBudkhim, a private joint-stock company. This is reported by "Komersant Ukrainian" with reference to the Government portal.
According to the resolution, 100% of the company’s shares will be put up for an open electronic auction in the Prozorro.Sale system. The starting price of the stake is UAH 301 million 406 thousand 452.
Context of the privatization
PJSC VinnytsiaPobutkhim was transferred to state ownership in accordance with the decision of the High Anti-Corruption Court of Ukraine. The court ordered the confiscation of the company’s property in connection with sanctions against its previous owner, the Russian joint-stock company Nevskaya Cosmetics. This is one of the companies subject to economic restrictions under the anti-Russian sanctions.
The government has included this asset in the list of large-scale privatization targets. The proceeds from the sale will be transferred to the state budget and directed to the special Fund for the liquidation of the consequences of the armed aggression of the Russian Federation.
Privatization terms and obligations of the new owner
According to the approved terms of the privatization auction, the winning bidder will be obliged to
- maintain the main activities of the enterprise, which specializes in the production of household chemicals and cosmetics
- fully pay off wage arrears and tax debts to the budget within six months;
- repay overdue accounts payable (except for debts to sanctioned persons);
- not to transfer company assets and corporate rights to persons associated with the aggressor state;
- ensure that the labor rights of employees are preserved, in particular, that a moratorium on dismissals is observed in the first six months after the change of ownership;
- ensure that the company’s activities comply with the requirements of the current environmental legislation of Ukraine.
What you need to know about VinnytsiaPobutkhim PrJSC
VinnytsiaPobutkhim is one of the largest household chemicals producers in Ukraine.
- Location: Vinnytsia, Ukraine
- Legal form: private joint-stock company
- Core business: production of detergents, household chemicals, cosmetics and hygiene products.
The plant specializes in the production of a wide range of everyday goods, in particular, it produces
- laundry detergents
- liquid detergents
- cleaning products for kitchens, bathrooms, toilets
- cosmetic products (soaps, shampoos, shower gels, creams, etc.).
The company operates full-fledged production lines, logistics facilities and a research and development department that ensures the development and adaptation of products in accordance with market demands.
For a long time, the company has been operating under the brands of the Russian manufacturer Nevskaya Cosmetics JSC. The products were manufactured under both Ukrainian and Russian trademarks.
After the company was taken over by the state, it was included in the list of large-scale privatization. The Government of Ukraine decided to sell 100% of the stake in order to attract investment, save jobs and further develop production.
At the time of the auction in 2025, the company continues to operate, has its production infrastructure, staff and established supplies to the domestic market. Some products are sold through retail chains throughout Ukraine.
“Big privatization” of the Cabinet of Ministers of Ukraine: basic facts
The Big Privatization program is an initiative of the Cabinet of Ministers of Ukraine aimed at selling large state-owned enterprises to private investors through transparent auctions. Its goal is to reduce the state’s share in the economy, attract private capital, improve asset management and fill the state budget.
What is “large-scale privatization”?
This is the sale of state-owned assets that are classified as large according to the law, i.e:
- their book value exceeds UAH 250 million;
- they have a significant impact on the market, regional economy or industry.
Such objects may include factories, industrial, energy, logistics, chemical, manufacturing, transportation, etc.
The main goal of the program is to
- To attract strategic investors.
- To simplify the structure of state ownership.
- Reduce budget expenditures on maintenance of unprofitable enterprises.
- Create new jobs.
- Increase tax revenues.
- Reduce corruption risks inherent in the management of state property.
How the “big privatization” is going on
1. Preparation of the object for sale – audit, valuation, development of privatization conditions.
2. The Cabinet of Ministers approves the starting price and terms of participation.
3. Electronic auction – conducted through the Prozorro.Sale system, openly and transparently.
4. Conclusion of an agreement with the winner – the new owner assumes obligations (e.g., maintaining the business profile, paying off debts, guarantees to employees).
Examples of large-scale privatization objects
- United Mining and Chemical Company (UMCC) – privatized in 2021.
- Centrenergo JSC is in the process of preparing for privatization.
- Vinnytsapobutkhim PJSC – to be put up for auction in 2025.
“Big privatization” does not imply uncontrolled sales. All objects are accompanied by special conditions – from environmental to social – to protect the state, employees and local communities from the negative consequences of a change of ownership.
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