Ukraine to auction Vinnytsiapobutkhim in USD 7.4M deal amid post war recovery efforts

UKRAINE – Ukraine is set to auction off Vinnytsiapobutkhim, a nationalized cosmetics and household chemicals plant in Vinnytsia, formerly linked to Russian oligarchs.

This is part of its broader post-war economic recovery and privatization of assets strategy. 

The State Property Fund of Ukraine has scheduled an online auction for August 13, 2025, offering 100% of the company’s shares at a starting price of UAH 301.4 million ( USD 7.4 million), excluding VAT. 

Applications will be accepted until August 12. 

The plant’s assets were seized in 2022 and transferred to Ukraine’s Asset Recovery and Management Agency (ARMA) following a court ruling. 

In 2024, management of the facility was handed to Krytex-Service LLC, a Ukrainian firm owned by Ruslan Shostak and Valerii Kiptyk, who also operate the Eva and Varus retail chains. 

The auction terms include mandatory social and investment obligations, such as maintaining core operations, settling outstanding debts, and preserving jobs for a minimum of six months. 

In addition, buyers are prohibited from transferring assets to individuals or entities with Russian ties who are subject to sanctions.

This privatization effort is part of Ukraine’s ongoing initiative to repurpose seized Russian-linked assets and channel proceeds into the Fund for Liquidation of the Consequences of Armed Aggression. 

Early in the year, the State Property Fund of Ukraine announced plans to privatize Vinnytsiapobutkhim, a manufacturer of cosmetics and household chemicals.

The facility was previously operated by Russia’s Neva Cosmetics, a company associated with oligarchs Viktor Kononov and Volodymyr Plesovskyi. 

It produced a range of consumer products under brands such as Ushasty Nyan, Sarma, Mr. Chister, Lotus, and Max.

The plant has 12 production lines and a monthly output capacity of 6,000 to 7,000 tons of detergent, positioning it as a significant player in the domestic manufacturing landscape.

Meanwhile, Ukraine is accelerating large-scale privatization, aiming to sell at least ten major state-owned enterprises and 300 smaller assets in 2025 to attract foreign investment and enhance efficiency. 

This includes companies such as Shell-branded gas stations, a titanium factory, and the Ocean Plaza shopping mall in Kyiv, targeting $3.2 billion in privatization revenue. 

This strategy aims to eradicate corruption, restructure key industries, and integrate Ukraine into global markets.

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