Ukraine Accelerates Privatization: Major Strategic Assets Up for Sale in 2025

In 2025, the Ukrainian government plans to sell at least ten large companies to foreign investors, exceeding its $3.2 billion privatization revenue target for 2025.

Ukraine is continuing its large-scale privatization drive, aiming to sell off major state-owned enterprises and nationalized assets from sanctioned Russian oligarchs, acting State Property Fund of Ukraine (SPFU) head Ivanna Smachylo told Forbes Ukraine in an interview. 

In 2024, the SPFU privatized the United Mining and Chemical Company (UMCC), a key titanium producer, and Aeroc, a gas concrete manufacturer previously owned by sanctioned Russian businessman Andrey Molchanov. Now, the government plans to sell at least ten large companies in an auction in 2025.

Initially, the SPFU planned $4 billion in privatization revenue for 2024 but exceeded expectations, generating over $13 billion. The agency expects to surpass its 2025 target of $3.2 billion, with $2.3 billion already addressed to the state budget from auctions in January.

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Ocean Plaza, one of Kyiv’s largest shopping malls, is also on the list of potential privatizations. Previously it was owned by Russian oligarchs – Arkady and his son Igor Rotenberg with a controlling stake of 66.65%. In March 2023, the Supreme Anti-Corruption Court of Ukraine confiscated their share in favor of the state. 

The SPFU now controls 66.65% of the parent company, Investment Union Lybid, along with a significant loan tied to the asset. The company faces a major debt burden of $148 million, plus an additional $67.6 million in interest. If the company fails to settle its obligations by Dec. 31, 2025, SPFU will collect the debt through lawsuits.

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Another critical asset is the 49% stake in Alliance Holding, which owns Shell-branded gas stations in Ukraine. Previously, 51% of Alliance Holding belonged to the international company Shell Netherlands, and 49% to Russian businessman Eduard Khudainatov, who was sanctioned after the start of Russia’s full-scale war on Ukraine.

In October 2024, SPFU officially became the owner of Khudainatov’s 49% share and announced its intention to sell the state-owned assets.

The state-run oil giant Ukrnafta is acquiring the remaining 51% from Shell, and SPFU is evaluating its next steps regarding its minority shareholding.

Meanwhile, the Demurinsky Mining and Processing Plant (GZK) in Dnipropetrovsk region, which produces titanium products, has been bought in a state of disarray – corporate rights, property, and assets were fragmented, and documentation was missing. Previously, the company belonged to Russian billionaire Mikhail Shelkov. Now operational, Demurinsky GZK is awaiting a court ruling on outstanding debt before it can be sold.

Mykolaiv Alumina Plant – the largest alumina producer in Ukraine – is another key industrial asset. Rusal, which got a key raw material for aluminum production from the plant, produced 3.74 million tons of electrolytic aluminum in 2021, accounting for about 5.6% of the global output. 

The Ukrainian plant faces challenges due to the closure of Mykolaiv’s port after numerous Russian missile strikes, which makes it less attractive for investors, who prefer more stable assets to those suffering from war. SPFU is working on consolidating its assets before putting them up for sale.

Other major state-owned assets likely to be auctioned

In the coming months, the State Property Fund wants to sell Vinnytsia Household Chemicals Plant (Vinnytsiapobuthim), a leading producer of household chemicals in Ukraine, through the ProZorro online system. 

Another asset in focus is VSMPO Titan Ukraine, a titanium producer previously blocked by National Security and Defense Council (RNBO) sanctions. These restrictions were lifted in late 2024, clearing the way for privatization.

Meanwhile, Odesa Portside Plant, a major chemical producer, remains operational but faces security concerns because it’s located where Russian missiles often strike. The government plans to privatize it once stable operations are ensured.

Ukraine plans to sell 10 large and 300 small assets

In 2025, Ukraine aims to sell more than 300 smaller state assets, including Kyiv Automobile Repair Plant, Zhytomyr liquor and vodka distillery factory, Kalush Pipe Plant, and Ukrainian trading house Eurotrubplast. Among the ten major sales planned are Motordetal-Konotop LLC, Ukrbud, and Odesa Portside Plant.

“Over 95% of state-owned enterprises are unprofitable. This is not because they lack potential, but because private ownership incentivizes efficiency,” Smachylo explained.

Ukraine’s privatization push is not just about generating revenue — it is about restructuring the economy, attracting foreign investment, and ensuring long-term competitiveness in key industries, Smachylo told Forbes Ukraine.