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How businesses can acquire state-owned assets during wartime: opportunities from the State Property Fund of Ukraine

12/ 10/ 2026
  On 6 October, the European Business Association met with Dmytro Natalukha, Head of the State Property Fund of Ukraine (SPFU). Participants discussed procedures for the privatisation of state-owned assets, properties being prepared for sale, auction mechanisms and instruments for reducing risks for potential investors. One of the key topics was the assets put up for privatisation by the SPFU in October. These include Odesa Port Plant (19 October), Sumykhimprom (13 October), Demurinsky Mining and Processing Plant and Motordetal-Konotop (both on 20 October). Dmytro Natalukha presented an overview of these assets, including their capacities and specific features that investors should take into account when assessing acquisition opportunities. The Head of the SPFU also highlighted the results of state asset privatisation since the beginning of Russia’s full-scale invasion. Successful cases include the United Mining and Chemical Company, Hotel Ukraine, AEROK LLC and VinnytsiaPobutkhim PrJSC. Businesses also received further information about auction procedures. The English auction is the main format used for the privatisation and sale of assets. Dutch auctions, in turn, are used, among other cases, to sell sanctioned assets and when an English auction and a subsequent auction with a 50% price reduction have both failed to attract buyers. This approach enables the SPFU to apply different sale mechanisms depending on the type of asset and market conditions. A separate part of the presentation focused on prospective assets that may be of interest for privatisation in 2027, including the Mykolaiv Alumina Plant, Ocean Plaza shopping and entertainment centre, and Kriukiv Railway Car Building Works. Dmytro Natalukha also outlined available instruments for mitigating risks, including political risk insurance, partial compensation programmes and preferential lending opportunities under the Ukraine Investment Framework. The SPFU currently manages more than 2,000 assets. However, the Fund’s capacity to process and prepare such a large number of properties for privatisation remains a challenge. Nevertheless, the SPFU is working to simplify and accelerate privatisation procedures. The meeting also addressed opportunities to use state-owned underground premises that could be of interest to businesses seeking warehouse space. The SPFU has already compiled a list of such premises and submitted it to the Ministry of Economy. This could provide an additional resource for companies looking for suitable facilities in light of security challenges. Participants had the opportunity to ask the speaker questions relevant to their businesses and discuss practical aspects of taking part in the privatisation of state-owned assets. The Head of the SPFU encouraged the business community to take a more active interest in privatisation opportunities, noting that the state is currently offering a wide range of instruments to attract private capital.

On 6 October, the European Business Association met with Dmytro Natalukha, Head of the State Property Fund of Ukraine (SPFU). Participants discussed procedures for the privatisation of state-owned assets, properties being prepared for sale, auction mechanisms and instruments for reducing risks for potential investors.

One of the key topics was the assets put up for privatisation by the SPFU in October. These include Odesa Port Plant (19 October), Sumykhimprom (13 October), Demurinsky Mining and Processing Plant and Motordetal-Konotop (both on 20 October). Dmytro Natalukha presented an overview of these assets, including their capacities and specific features that investors should take into account when assessing acquisition opportunities.

The Head of the SPFU also highlighted the results of state asset privatisation since the beginning of Russia’s full-scale invasion. Successful cases include the United Mining and Chemical Company, Hotel Ukraine, AEROK LLC and VinnytsiaPobutkhim PrJSC.

Businesses also received further information about auction procedures. The English auction is the main format used for the privatisation and sale of assets. Dutch auctions, in turn, are used, among other cases, to sell sanctioned assets and when an English auction and a subsequent auction with a 50% price reduction have both failed to attract buyers. This approach enables the SPFU to apply different sale mechanisms depending on the type of asset and market conditions.

A separate part of the presentation focused on prospective assets that may be of interest for privatisation in 2027, including the Mykolaiv Alumina Plant, Ocean Plaza shopping and entertainment centre, and Kriukiv Railway Car Building Works.

Dmytro Natalukha also outlined available instruments for mitigating risks, including political risk insurance, partial compensation programmes and preferential lending opportunities under the Ukraine Investment Framework.

The SPFU currently manages more than 2,000 assets. However, the Fund’s capacity to process and prepare such a large number of properties for privatisation remains a challenge. Nevertheless, the SPFU is working to simplify and accelerate privatisation procedures.

The meeting also addressed opportunities to use state-owned underground premises that could be of interest to businesses seeking warehouse space. The SPFU has already compiled a list of such premises and submitted it to the Ministry of Economy. This could provide an additional resource for companies looking for suitable facilities in light of security challenges.

Participants had the opportunity to ask the speaker questions relevant to their businesses and discuss practical aspects of taking part in the privatisation of state-owned assets. The Head of the SPFU encouraged the business community to take a more active interest in privatisation opportunities, noting that the state is currently offering a wide range of instruments to attract private capital.

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