The State Property Fund of Ukraine (SPF) continues to prepare Russian sanctioned assets for privatization at auctions, despite the difficulties.

According to a press release from the fund, due to the lack of potential buyers, the first auction for the sale of sanctioned property did not take place. On it, the State Property Fund planned to sell Investagro company.

"Soon we will announce a new auction. Our goal is that all the property seized from the Russian oligarchs and those who support the war will work for victory and strengthen our economy," the SPF emphasizes.

At the same time, it is explained why the first auction did not take place: the starting cost of Investagro was UAH 55 million - at the level of its book value, but non-current assets amount to only UAH 3.9 million. A significant share of the book value - UAH 21 million - is accounts receivable, that is, funds that counterparties must pay to the entrepreneur. In addition, the investor, according to the terms of the competition, is obliged to repay UAH 17.2 million of current debts.

It is specified that earlier Investagro belonged to the Russian billionaire, the shareholder of VSMPO-Avisma titanium corporation Mikhail Shelkov. This corporation supplied titanium products to enterprises of the Russian military defense industry, in particular, under contracts for the implementation of the state defense order.

Due to the fact that the Russian billionaire contributed to the armed aggression of the Russian Federation against Ukraine, in the winter of 2023 the High Anti-Corruption Court of Ukraine applied sanctions against him, seizing his Ukrainian assets (100% of Investagro LLC, 100% of VSMPO Titan Ukraine LLC‎, 100% of Demurynsky Mining and Processing Plant, 100% of TI-Minerals, etc.).

In February 2023, the Cabinet of Ministers transferred the seized assets of Shelkov to the management of the State Property Fund, and in July the fund announced the first privatization auction for the sale of his property.