The head of Ukraine’s State Property Fund, Dmytro Natalukha, has raised concerns over recent searches conducted by law enforcement at the agency. These investigations are linked to suspicions of misconduct regarding the upcoming privatization of the Ocean Plaza shopping center in Kyiv.
According to the Office of the Prosecutor General, officials are suspected of attempting to artificially lower the value of Ocean Plaza prior to its sale. The investigation suggests that these actions may have been taken to benefit specific commercial interests, potentially influencing the asset’s valuation and ensuring it is sold to a pre-selected buyer.
In response, Natalukha emphasized that the State Property Fund does not determine the asset’s value. He noted that the final price, date, and method for selling Ocean Plaza have yet to be agreed upon. Under current legislation, for assets valued over 250 million UAH, the Fund only proposes a starting price, which must be approved by the government.
Furthermore, Natalukha clarified that property evaluations are conducted by independent appraisers with specialized qualifications, and their reports undergo mandatory review. He also highlighted that the sale of Ocean Plaza will occur through an open online auction on the Prozorro platform, which precludes any manipulation of the bidding process.
Natalukha expressed concern that the law enforcement actions could deter potential investors, both domestic and international, and dishearten Fund employees from signing necessary documents due to fears of criminal prosecution. He stated, “In essence, we are witnessing a discrediting and disruption of the entire privatization process in the country, not just concerning Ocean Plaza.”
The head of the Fund suggested that the motivations behind the media and legal scrutiny may be to sabotage the sale of Ocean Plaza, which would benefit its former Russian owners, the Rotenberg family. He warned that similar risks to transparent privatization exist for other significant state assets, including the Odesa Portside Plant and the Odesa Film Studio.
As a reminder, the Ukrainian government is preparing to privatize a controlling stake of 66.65% in Ocean Plaza. This stake was seized in favor of the state following a ruling by the High Anti-Corruption Court against sanctioned Russian oligarch Arkadiy Rotenberg and his associates. In June 2023, the Cabinet of Ministers transferred the asset to the management of the State Property Fund.
The Fund plans to auction the state’s share in Ocean Plaza by the end of 2026, with a preliminary starting price estimated at around $100 million. Currently, the necessary documentation is being prepared.
Recent law enforcement investigations into the privatization of Ocean Plaza have raised significant concerns within Ukraine's State Property Fund. The head of the Fund argues that these actions could undermine the privatization process and benefit former owners linked to Russia.