Ukraine to privatize Kalush Pipe Plant and Eurotrubplast seized from Russian oligarch
Photo: Eurotrubplast

The State Property Fund of Ukraine has put up for privatization assets confiscated from Russian oligarch Myron Horilovsky. These include a 93% stake in Kalush Pipe Plant LLC valued at UAH 139.7 million, and a 93% stake in Eurotrubplast Trading House LLC valued at UAH 54.2 million, according to the Prozorro.Sale system.

The privatization auction is scheduled for September 16.

Eurotrubplast Trading House served as the management company for both the Rubizhne and Kalush pipe plants.

Kalush Pipe Plant manufactures single-layer and multi-layer polyethylene pipes, pipes with protective coatings for water and gas supply (diameters 20–630 mm), double-layer corrugated pipes for sewage networks (diameters 90–600 mm), segment-welded fittings for water supply (90–630 mm), as well as welded sewer wells.

According to the State Property Fund, in the first half of the year, Eurotrubplast generated just UAH 2.35 million in revenue and recorded a net loss of UAH 8.3 million. The company has outstanding liabilities of UAH 47.86 million and employs only seven people.

Over the same period, Kalush Pipe Plant reported UAH 42.25 million in revenue but a net loss of UAH 3.4 million. Its accounts payable amounted to UAH 119.9 million, and it employs 112 workers.

The privatization terms for both enterprises require the buyer to repay wage and tax arrears within six months and to prevent employee layoffs during this period.

Proceeds from the privatization of these nationalized assets will be directed to the Fund for Eliminating the Consequences of Armed Aggression.

The Rubizhne Pipe Plant is not yet up for sale due to the ongoing occupation of the Luhansk region.

  • Myron Horilovsky’s Russian group, Poliplastik, supplied pipes for the construction of the Kerch Bridge, as well as for breakwaters and a 65 km water pipeline in eastern Crimea, which supplies Feodosia, Kerch, and the Leninsky district through the North Crimean Canal. All of these activities were carried out without the consent of Ukrainian authorities and in violation of international sanctions.
  • Horilovsky’s son, Lev Horilovsky, is the president of the Russian Poliplastik Group LLC, a member of the governing bodies of the Kremlin-controlled NGO Business Russia, and regularly participates in meetings with the Russian president.
  • Myron Horilovsky has publicly claimed that his factories produce half of all plastic pipes in Russia.