Ukraine will sell confiscated Russian construction material factories.

The Cabinet of Ministers have allowed the State Property Fund (SPFU) to auction the state’s ownership Aeroc, an aerated concrete production enterprise seized in 2022 from Russian Andrey Molchanov. The starting bid for the state’s 100% share of Aeroc is ₴965.3M ($23M). The future buyer must maintain the company’s main activity, pay off debts to employees and state, and refrain from layoffs for six months.

Aeroc is one of the key players in the Ukrainian aerated concrete market, manufacturing products from aerated concrete and concrete, and supplies structures for residential and industrial construction. It owns two factories, in Obukhov and Berezan, Kyiv region, which have been closed since July 2022. Their capacities exceed one million cubic meters per year, while Ukraine’s total volume of aerated concrete production in 2020 was four million.

The company’s 2020 turnover reached ₴1.3B. The prosecutor’s office estimated the total value of Aeroc’s property at ₴2B.