State Property Fund gets $5.3 million for distillery sold over 18 months ago

The State Property Fund transferred UAH 194.4 million ($5.3 million) to the state budget from the privatization of the Kosarskyi distillery in Cherkasy Oblast, the sale of which was auctioned in November 2021, reported the SPFU press service.

For in-depth analysis and longer stories, follow us on LinkedIn

During the auction, the price for the asset increased 3.3 times to UAH 162 million ($4.4 million) (without VAT), or UAH 194.4 million ($5.3 million) including VAT. The winner of the auction was the company Gorky Agrofirma, which is part of the agricultural holding Ristone Holdings, the founder and beneficiary of which is the former MP Vadym Nesterenko.

After winning the auction, the buyer sued over alleged defects SPFU did not disclose. The company argued the state fund failed to inform buyers about defects that could prevent full use of the enterprise.

Half of the containers at the enterprise contained 300,000 tons of alcohol, from the former Ukrspirt plant owner who claimed they had no options to dispose of it. The State Property Fund could not amend standard contracts to require disposal obligations, explained Yevheniya Bozhko, managing partner of the National Electronic Exchange.

In early May 2023, based on forensic exam results, the Commercial Court of Kyiv denied the plaintiff's claim.

The Kosarskyi Distillery, built in 1872 and modernized in 2019, consists of 1,363 objects covering 22,251.6 square meters, including buildings, equipment and property.