The state-owned construction company Ukrbud will not be sold to a Georgian businessman due to sanctions.

The State Property Fund of Ukraine (SPFU) refused to approve the results of an auction to sell a large privatization asset with 100% of the shares of the state joint-stock company Construction Company Ukrbud. The Petro Oil and Chemicals company, owned by Georgian businessman David Bezhuashvili, bid ₴805M for Ukrbud but was disqualified on June 30.

This came after the Department of Economic Security issued a memorandumthat established restrictions on the winner according to the privatization law: “Individuals and legal entities against whom special economic and other restrictive measures (sanctions) have been applied, as well as persons related to them, cannot be buyers.”

As a result, the privatization rights were transferred to the Techno-Online company, registered in 2007 in Sumy. Its primary activities are wholesale trade in iron products, plumbing, and heating equipment. If the deal goes through, the company will acquire an enterprise that includes 88 buildings, additional structures, non-residential premises, and 17 land plots.