Ukraine sells agribusiness seized from Russian businessman for $663,000

MOSCOW. July 10 (Interfax) - Ukraine's State Property Fund, on its fourth try, finally held a successful auction to privatize 100% of shares in agribusiness Investagro, which was seized from Russian businessman Mikhail Shelkov in 2023.

The auction was won without competition by Dniproagro Agribusiness Company LLC, which is registered to Sergei Kryachek and Dnipro Agro Group CEO Dmitry Guletsky, with a bid of UAH27 million (about $663,400 at the current exchange rate), Ukrainian media reported, citing the Prozorro.Sale electronic trading system.

Investagro, which operates in the Sinelnikovsky district of Dnepropetrovsk region, primarily grows sunflower, millet, rapeseed and wheat. The company owns 25 pieces of real estate and infrastructure with combined area of 6,200 square meters, including production, storage and administrative buildings and structures, and 13 vehicles. The company also leases 226 plots of land totaling 1,483 hectares.

The Property Fund earlier made three unsuccessful attempts to sell Investagro. At the first auction in June 2023 the starting price was UAH55 million, but there were no bidders. A second auction was cancelled by the fund itself, and at the third the starting price was lowered to UAH48.9 million.

Ukraine's High Anti-Corruption Court and its appeals chamber ruled at the beginning of 2023 to seize the Ukrainian assets of Shelkov, who was previously the principal beneficiary of Russian titanium producer VSMPO-Avisma Corporation (the company no longer discloses its ultimate beneficiaries). These assets included 100% of VSMPO Titan Ukraine LLC, 100% of the Demurinsky Mining and Processing Plant LLC (Demurinsky GOK) and 100% of Ty-Minerals. They were transferred to the State Property Fund on February 24, 2023. Shelkov was put on Ukraine's sanctions list back in 2021 and the sanctions were expanded in October 2022.

The official exchange rate was UAH40.70/$1 on July 9.