The Mykolaiv Alumina Plant will only have enough of its own funds to last until the summer of 2027

The Mykolaiv Alumina Plant and its sludge fields. Photo: NikVesti archive

The Mykolaiv Alumina Plant (MAP) will have sufficient funds to last until approximately summer 2027. If the plant is not sold at auction by then, state financial assistance may be required to keep it running.

Dmytro Natalukha, head of the State Property Fund of Ukraine, spoke about this in an interview with NikVesti.

Despite the suspension of production, the plant continues to maintain its equipment, production facilities and two slurry storage sites. At present, the company receives no financial support from the state budget and covers all expenses from its own funds.

According to Dmytro Natalukha, the existing financial reserves will last until approximately summer 2027. If the plant cannot be privatised by then, the State Property Fund will consider the possibility of drawing on budgetary funds.

«For now, we are hoping for a successful auction. But I think that as the date approaches, we will be working through a scenario in which it does not take place. We will then consider budgetary support.» However, for now we are preparing for the optimistic scenario,» explained Dmytro Natalukha.

As Oleksii Medvid, head of MAP, previously told NikVesti, the main task for staff at present is to maintain the equipment and look after two sludge fields with a total area of around 400 hectares.

«These 400 specialists are monitoring the condition of the plant itself, the equipment and the two tailings ponds. This is the only section of the plant that is, in essence, still operational. The tailings remain; no new tailings are being added, but they are being stored. We need to keep an eye on the embankments,» explained Oleksii Medvid.

The sludge storage areas require constant maintenance, in particular keeping the surface damp to prevent dust from spreading. Staff also monitor the condition of the embankments and the level of accumulated water.

As a reminder, the Mykolaiv Alumina Plant halted production in 2022 following the start of Russia’s full-scale invasion. In 2023, the High Anti-Corruption Court ruled that the assets of Russian businessman Oleh Deripaska should be confiscated and transferred to the state. The plant was subsequently transferred to the management of the State Property Fund.

NikVesti previously reported that an auction to sell the Mykolaiv Alumina Plant is planned for the first quarter of 2027. Initially, the plant was due to be sold by the end of 2026, but the deadline was postponed due to preparations for the privatisation of the entire portfolio of confiscated assets. According to Dmytro Natalukha, both Ukrainian and foreign investors are showing interest in the enterprise.

At the same time, the State Property Fund has not yet decided whether to sell the two sludge storage facilities alongside the plant. The final decision on the terms of privatisation is to be taken by the Cabinet of Ministers.