The Cabinet of Ministers is approaching the Sumykhimprom issue for the third time — and again through price reduction. By Order No. 676-r of July 8, 2026, the government approved a new starting value for the state stake in shares (99.9952% of charter capital) at the level of 1.005 billion UAH — 83 million UAH less than last year.
Chronicle of Failures
The first auction took place on June 11, 2025, with a starting price of 1.158 billion UAH — no participants. The commission reduced the price by 9.3%, to 1.088 billion UAH, and scheduled repeat bidding for January 13, 2026. The result was identical: the Prozorro.Prodazhi protocol recorded a laconic "participants absent."
"We understand the risks — it is located close to the line of contact, and this is a significant risk factor for the asset"
Deputy Minister of Economy Daria Marchak — about Sumykhimprom in an interview with Interfax-Ukraine
The plant in Sumy is located less than 40 km from the Russian border — a geography that no discount has neutralized so far.
What Changed This Time
In addition to the reduced price, the Cabinet of Ministers obligated the State Property Fund to report annually to the government by December 20 on the buyer's fulfillment of contract conditions. The conditions for the buyer itself remain: preserve the production profile, invest at least 150 million UAH in modernization, pay dividends to the budget for 2025 and by the date of sale in 2026.
In parallel, the government adopted a resolution on compensating farmers for part of the costs of purchasing domestic mineral fertilizers — one of the arguments by the State Property Fund that domestic demand for the plant's products will grow, and therefore its attractiveness will increase.
Context: Chemical Plant for 24 Million Dollars in Line for 370
According to the State Property Fund's April schedule, Sumykhimprom is the cheapest lot among six major objects in 2026: $24 million versus $106 million for the Odesa Port Plant and $100 million for Ocean Plaza shopping center. The overall privatization plan covers assets worth $370 million. Sumykhimprom on this list is the object with the largest number of failed attempts and the lowest price.
- Founded: 1953, Sumy
- Products: mineral fertilizers, titanium dioxide, inorganic chemicals
- Distance to the frontline: less than 40 km from the Russian border
- New starting price: 1.005 billion UAH (–7.6% from previous)
- Auction date: September–October 2026
If the third auction also fails to attract participants, the State Property Fund will face a choice: either lower the price below the psychological mark of 1 billion UAH and admit that the market values the asset radically differently from the state, or freeze privatization until the active phase of the war ends — and then the question of effective state management of the plant will become uncomfortable.
