Cabinet identifies next object for large-scale privatization priced at $35 million

The Cabinet of Ministers of Ukraine has approved the conditions for the privatization of 100% of the statutory capital of Aeroc LLC, which the state seized as part of sanctions against Russian oligarch Andrey Molchanov, announced the government representative in the parliament Taras Melnychuk.

The starting price for the privatization auction of Aeroc will be 965.33 million hryvnias ($35.8 million).

The funds obtained from the sale will be credited to the state budget and directed to the fund for the liquidation of the consequences of armed aggression.

The future buyer must maintain the company's main business activity, pay off debts to employees and the budget, and not allow any layoffs for six months.

Aeroc is a key player in the Ukrainian aerated concrete market. The company owns two plants in Ukraine: one in Obukhiv and one in Berezan, Kyiv Oblast, which have not been operational since July 2022. Additionally, the company has an unfinished plant in the city of Stryi, Lviv Oblast.

After Russia began its full-scale invasion of Ukraine, Aeroc's assets were seized and transferred to the state Asset Recovery and Management Agency (ARMA).

In January 2023, ARMA appointed a manager for Molchanov's business. The appointed company was Kharkiv Building Materials, which, like Aeroc, specializes in the production of aerated concrete, as well as bricks, gas blocks, concrete, and other building materials.

The contract with the manager was to be signed after the evaluation of the seized assets, but by June 2023, the Ministry of Justice initiated confiscation.

Within a few months, the Supreme Court seized Aeroc's shares in favor of the state as part of the sanctions against Molchanov.

In July 2024, the Cabinet of Ministers included Aeroc in the list for large-scale privatization. The last major privatization object, the United Mining and Chemical Company, was sold for nearly 4 billion hryvnias ($97 million).