Odesa Port Plant: privatization attempt #4
27 August 10:27
The Cabinet of Ministers of Ukraine has made another decision on the privatization of Odesa Port Plant (OPZ). This was announced by Ukrainian Prime Minister Yuliya Sviridenko, who called this step a part of a large privatization of state assets, "Komersant Ukrainian" reported.
According to the official, one of the country’s largest chemical complexes will be put up for an open electronic auction with an initial price of UAH 4.5 billion.
Purpose of privatization
According to the Prime Minister, the restoration of full operation of OPZ is possible only through the involvement of a private owner and significant investment.
“The sale of OPZ will allow to fill the budget, create new jobs and provide Ukrainian agrarians with access to domestic fertilizers.”
– wrote Prime Minister.
The state stake in OPZ will be sold through a transparent procedure of open electronic auction, which should ensure maximum efficiency of the privatization process.
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State of the enterprise
Before the full-scale war, OPZ was one of the key chemical producers in Ukraine, specializing in the production of ammonia and urea, as well as the export of fertilizers. However, since 2022, the plant’s main production has been halted.
During the war period, the plant operated on a limited basis to meet critical oxygen and nitrogen needs, as well as serving as a port hub.
The state holds more than 99.5% of the plant’s shares, so there is talk of a complete transfer of the plant into private hands.
History of OPZ “privatizations”
The current government decision to privatize the Odesa Port Plant is the fourth attempt to put it into private hands.
For the first time it was decided to sell it in 2009 during the presidency of Viktor Yushchenko and the premiership of Yulia Tymoshenko. However, the Constitutional Court banned it then.
The next attempt was made in post-Maidan Ukraine in 2014. At that time, the State Property Fund put only 5% of the company’s shares up for auction, but after a week the process was suspended, as it was explained at the time, due to the need to work out the optimal terms of the sale.
A year later, in 2015, the Cabinet of Ministers made another decision to privatize a number of companies, including OPZ. However, the matter did not move until now.
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