Privatization from the second go-around: the state has put Rivne Radio Engineering Plant up for sale for half the July price
22 September 20:15
TheState Property Fund of Ukraine (SPFU ) has announced a privatization auction of a 50% stake in 1 share of Rivne Radio Engineering Plant, "Komersant Ukrainian" reports.
A message on Telegram says that 22,423,190 shares are up for auction. The starting price is UAH 60.8 million, which is half as much as in July 2025, when the stake was valued at more than UAH 121 million.
Why the price fell
The State Property Fund does not explain the reduction in the starting price, but experts attribute it to low interest in the previous auction and the plant’s debt burden.
Debts and problems of the enterprise
Rivne Radio Engineering Plant has significant financial difficulties:
- over UAH 18.8 millionin arrears to the budget
- over UAH 11.4 millionin salary arrears.
The previous owner of the enterprise, who received the asset in the course of privatization, not only failed to repay the debts but also allowed them to grow.
As a result, the prosecutor’s office succeeded in returning the plant to state ownership.
Context: return of assets to state ownership
Earlier, a similar story happened with the Rivne Automobile Repair Plant, which was also returned to the state after it failed to fulfill its privatization obligations.
Both enterprises were previously part of Ukroboronprom and were of strategic importance in the defense industry.
What will happen next
The winner of the new auction will receive a controlling stake and actual management of the enterprise. At the same time, it will have to pay off the plant’s debts, which could be a key factor for potential investors.
The auction is expected to take place in the near future.
Risks and prospects for investors
Experts note that the main risks for a potential buyer are financial liabilities and the state of production facilities. The plant needs modernization, without which the products will be uncompetitive.
However, given the demand for equipment and components in the electronics and defense industries, the investor could get a promising asset. Subject to debt restructuring and investments in modernization, the company may return to the market as part of a new defense industry cluster in Ukraine.
We remind you that privatization of state-owned enterprises in 2024-2025 has become part of the government’s policy to fill the budget and attract investment.
At the same time, many facilities have debts or worn-out production assets, which reduces their attractiveness.
Rivne Radio Engineering Plant specialized in manufacturing products for military and civilian electronics.
