The Cabinet puts "Ukrbud" up for auction

The Cabinet puts "Ukrbud" up for auction

The state construction company "Ukrbud" will be auctioned with a starting price of 262.64 million UAH. The buyer will be required to meet a number of conditions, such as debt repayment, job preservation, and compliance with environmental standards.

This information was reported by the government representative in the Verkhovna Rada, Taras Melnychuk. The Cabinet of Ministers of Ukraine decided to sell 100% of the state company’s shares through an electronic auction.

The starting price is set at 262.64 million UAH. This decision is part of a major reform of the state economic sector and attracts investment in the construction sphere. The buyer of "Ukrbud" will be required to fulfill a number of conditions. The main ones include:

• repaying debts to employees and the budget within six months after purchase;
• maintaining the main activities of the company;
• paying overdue debts, excluding sanctioned creditors;
• ensuring social guarantees for employees and preventing mass layoffs within six months;

• complying with environmental standards and maintaining protective structures;
• concluding a new collective agreement after the current one expires;
• transferring dividends to the state budget for 2024-2025.

These conditions are aimed at ensuring that the privatization brings not only revenue to the budget but also contributes to the development of the company and the protection of its employees’ interests. The state construction company "Ukrbud" was included in the list of large privatization objects in September 2023. This was unexpected, as at the beginning of 2023, the State Property Fund received the company as one not subject to privatization. Now, after the sale, the company will fully exit state ownership.

By the end of 2023, the value of Ukrbud’s assets reached 266.6 million UAH. The privatization is expected to attract new investments into the company, which will help restore operations and expand construction projects.

"Ukrbud" is part of the "Ukrainian State Construction Corporation ’Ukrbud’," which has long played an important role in Ukraine’s construction industry. From 2010 to 2016, the corporation was headed by Maksym Mykytas, who used the brand of the state company to develop his private business. His company "Ukrbud Development" became a leading player.

Currently, Mykytas is under house arrest in a case involving the embezzlement of funds from the Ministry of Defence amounting to 307 million UAH. He is also suspected of attempting to bribe 22 million euros to obtain a contract for the construction of a metro in Dnipro.