The State Property Fund sold Rivnetorf at auction for UAH 205M.

The State Property Fund held an online privatization auction for the sale of the state-owned enterprise Rivnetorf, which produces peat semi-briquettes and non-agglomerated peat fuel. The selling price increased from an initial UAH 47.1M ($1.28M) to UAH 205M ($5.6M) as the bidding continued during the auction.

The auction winner has 20 working days to pay the lot’s price. In addition to the winning bid, the winner must also pay UAH 41M in VAT. In the event of a failure to pay, the fund explained that the winner will lose UAH 9.4M of the guaranteed fee. As of March 31, 2023, the company’s payables are UAH 6.9M, including wages and salaries of UAH 1.8M.

“The Rivnetorf buyer must repay wage debts and budget debts within six months. Also, workers cannot be dismissed on the new owner’s initiative during this period. After almost 60 years of operation, Rivnetorf’s equipment has worn out and needs to be replaced and modernized. Since 2012, no investments have been made in development,” the fund added.