Ukraine set to privatize Vinnytsiapobutkhim for USD 7.3M
The plant was officially nationalized in July 2024.
UKRAINE – The State Property Fund of Ukraine has announced plans to privatize Vinnytsiapobutkhim, a manufacturer of cosmetics and household chemicals.
Following a meeting of Ukraine’s auction commission, the State Property Fund set the starting bid for Vinnytsiapobutkhim at UAH 301.4 million (USD 7.3 million).
The auction date will be scheduled once the State Property Fund of Ukraine submits the proposed terms and pricing for government approval.
The State Property Fund of Ukraine stated, “It is important to note that accounts payable are not returned to persons subject to special economic sanctions and representatives of the Russian Federation.”
The commission outlined privatization conditions, prohibiting buyers from reselling, transferring, or leasing assets to sanctioned individuals or Russian representatives.
Additional requirements include maintaining the company’s core operations, settling wage and budget debts within six months, and paying overdue creditor claims.
The Ukrainian regulatory authority mandates that companies safeguard employee welfare and maintain job security by prohibiting layoffs for a minimum of six months.
In February, earlier this year, the Ukrainian government included Vinnytsiapobutkhim’s full stake in its large-scale privatization program.
The chemical manufacturer supplied detergents and powders to Russia’s Nevskaya Cosmetics, owned by Viktor Kononov and Vladimir Plesovskikh, under brands such as Ushastyi Nian, Sarma, Mister Chister, Lotos, and Maks.
Ukrainian authorities seized Vinnytsiapobutkhim’s assets in July 2022 and transferred them to the Asset Recovery and Management Agency.
Subsequently, FMCG distributor Kraiteks-Service was appointed to oversee the resumption of the company’s operations.
Kraiteks-Service has distributed household chemicals, cosmetics, and hygiene products in Ukraine for more than 15 years.
The company has collaborated with major brands such as L’Oréal, Henkel, Unilever, Beiersdorf, GlaxoSmithKline, Johnson & Johnson, BIC, and Schwarzkopf.
Vinnytsiapobutkhim has a robust production capacity, with 12 production lines capable of manufacturing 6,000 to 7,000 tons of laundry detergent monthly.
Privatizing this major industrial player aligns with Ukraine’s broader strategy to counter Russian aggression and restore economic sovereignty.
Additionally, the government has extended its ban on importing goods from Russia, a policy that has been in effect since 2015 and is renewed annually.
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