State Property Fund refuses to sell Ukrbud to Georgian businessman

The State Property Fund of Ukraine has refused to approve the results of an electronic auction for the privatization of 100% of the shares in the state-owned joint-stock company Ukrbud Construction Company. The decision was reported on the Prozorro.Sale platform.

The winning bidder, Petro Oil and Chemicals—a company owned by Georgian businessman David Bezhuashvili—had offered UAH 805 million for Ukrbud. However, the company was disqualified following a formal notice from the Economic Security Department. The disqualification was based on restrictions outlined in Article 8, Part 2, Clause 11 of the Law on Privatization:

"Persons and legal entities subject to special economic and other restrictive measures (sanctions) in accordance with the Law of Ukraine 'On Sanctions', as well as persons associated with them, are not eligible to participate in privatization."

State Property Fund refuses to sell Ukrbud to Georgian businessman
Source: Prozorro.Sales

As a result, the right to purchase was transferred to the runner-up, Techno-Online LLC, which had bid just one hryvnia less.

Techno-Online was registered in 2007 in the city of Sumy. Its core business involves the wholesale distribution of metal products, plumbing supplies, and heating equipment. The company’s ultimate beneficial owner is Marina Ayab.

If the deal is finalized, the company will acquire 88 buildings and facilities, as well as 17 land plots. Over 85,000 square meters of the real estate are located in government-controlled areas of Ukraine, while 27,000 square meters are in temporarily occupied territories. In Kyiv alone, the company will gain 19 properties totaling 27,158.9 square meters. Additional assets are located in Lviv, Kharkiv, Odesa, and Dnipro. Some of the lots include multiple facilities, which increases their cumulative value.

  • It is important to note that this state-owned Ukrbud is not affiliated with the private development company Ukrbud Development, formerly owned by Maksym Mykytas. The developer merely used the Ukrbud brand and logo. In recent years, the state company has been largely inactive in its core business areas and has operated primarily as a property lessor.