State Property Fund of Ukraine starts selling seized assets of Russians: Which company will be privatised first
The State Property Fund of Ukraine (SPFU) is starting to privatise assets seized from Russian oligarchs, with the first auction for the sale of the agricultural company Investagro to be held on 10 August on Prozorro.Sale digital platform.
Source: press service of the SPFU
Details: Investagro was previously owned by Mikhail Shelkov, a Russian billionaire and shareholder of VSMPO-Avisma titanium corporation.
The starting price of the lot is almost US$1.5 million, and the guarantee fee for participation in the auction is roughly US$297,000.
"We are keeping our promises. This auction should become a symbol of transparency and justice. The aggressor must be punished. The former Russian assets will be used to rebuild Ukraine and develop its economy," said Rustem Umerov, Head of the SPFU.
In 2022, Investagro earned US$100,000 in net profit, and in the first half of 2023, it lost about US$189,000. The company has current accounts payable of US$ 460,000.
Investagro owns 25 real estate properties and 12 vehicles. The company also leases 204 land plots with a total area of almost 1,326 hectares.
Background: The High Anti-Corruption Court (HACC) has confiscated the Ukrainian assets of Mikhail Shelkov, a Russian billionaire and former head of the investment division of the state-owned Rostec company.
The case involved Ukrainian Private Limited Company Demurynskyi (South) Mining and Processing Plant and the companies it founded, Investagro, VSMPO Titanium Ukraine, TAI Minerals, and its co-owner, Cyprus Limpieza Limited, as third parties.
Shelkov was included in the Ukrainian sanctions list in 2021. In October 2022, the sanctions were expanded to include Limpieza Limited.
Shelkov is the Deputy Chairman of the Board of Directors of Russia's VSMPO-Avisma, Russia's largest titanium supplier and one of the world's largest.
VSMPO-Avisma supplied titanium products to Russian military and defence companies, in particular, under contracts for the state defence order.
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