Nibulon has announced that the company is in a «very difficult situation»

Nibulon has announced that the company is in a “very difficult situation”. Photo: the company’s press office

Alexander Dolzhenkov, Director of Government Relations at Nibulon, has stated that the company is currently in a difficult financial position.

This was mentioned during a discussion on granting Nibulon a concession on land rent at a meeting of the Mykolaiv City Council’s budget committee last week, according to NikVesti.

As is known, Nibulon has approached the Mykolaiv City Council regarding the granting of a concession on the payment of rent for land potentially contaminated with explosive ordnance. This concerns over 50 hectares in the Mykolaiv seaport, where Nibulon’s plant and terminal are located. In its appeal, the company cites potential contamination of the water area and the impossibility of using it.

«As for clearing the area at our own expense — of course, once we are compensated for losses amounting to $500 million, then we will do a great deal ourselves. It seems that some councillors do not realise the company’s very difficult situation. And official information does not always correspond to reality,» said the company’s representative, Oleksandr Dolzhenkov.

Oleksandr Dolzhenkov, Director of Government Relations at Nibulon. Screenshot of the commission meeting broadcast

As Nibulon itself notes, due to the war, the company has lost some of its assets, including infrastructure and logistics capabilities. Furthermore, some agricultural land remains mined or unsuitable for use, which significantly impacts production activities.

As reported at the annual meeting of the company’s division heads, due to operational issues — notably the blocked port and fleet in Mykolaiv — almost all funds are currently being spent solely on interest payments on debts. It is stated that, over the years of the war, the company has paid $156 million in loan interest and $67.5 million in taxes.

«In 2025, we completed the restructuring of almost the entire loan portfolio; however, under the current business model, with the port terminal and fleet in Mykolaiv blocked, the company is effectively directing all available financial resources towards interest payments,» notes NIBULON’s Chief Financial Officer Mykyta Hrubov.

NIBULON owner Andrii Vadaturski told LIGA.net in an interview that the company had lost 70% of its operational capacity.

«As of January 2026, the company’s losses, as confirmed by experts, amount to around $600 million,» said Andrii Vadaturskyi.

Andrii Vadatursky. Photo: LIGA.net

In addition, the company notes that competition has become the greatest challenge — both domestically and in export markets. As a result, the company has lost some of its profitability. The company’s Director of Trade, Volodymyr Slavinskyi, told a general meeting of department heads at the end of last year that, due to these challenges, Nibulon had changed its approach to work and updated its trading strategy.

Andrii Vadaturskyi, in turn, explained that before the war, Nibulon’s main competitive advantage lay in logistics, thanks to its own fleet, river terminals and port infrastructure. Now, however, he said, the company has had to change this model.

«Our business rests on four pillars: agribusiness, grain elevators, logistics and trading... Each area must be profitable whilst simultaneously strengthening the entire system,» said Andrii Vadaturskyi.

The company has also updated its machinery and switched to modern precision farming. Furthermore, they are investing more in technology: irrigation, seeds and digital solutions.

It should be recalled that Nibulon announced a possible review of its presence in Mykolaiv should no decision be reached regarding the granting of a lease concession for this land. City councillor Serhii Kantor is shocked by threats from Nibulon’s lawyer to divert taxes from Mykolaiv to Kyiv.

Last week, at a city council session , the head of the Mykolaiv Regional State Administration, Vitalii Kim, stated that Mykolaiv risks losing at least 100 million hryvnias in annual tax revenue if councillors do not support granting land tax concessions to Nibulon.