Denmark is interested in the privatization of the Mykolaiv Alumina Plant

Director of IFU Oleksii Parkhomchuk, Ambassador of Denmark Ole Egberg Mikkelsen and Chairman of the State Property Fund Vitalii Koval, photo of the press service of the PSFU

Denmark has expressed interest in the privatization of the Mykolaiv Alumina Plant. This is stated in a publication on the website of the State Property Fund of Ukraine (PSFU) based on the results of the meeting of the head of the Fund, Vitalii Koval, with the Ambassador of Denmark, Ole Egberg Mikkelsen, and the investment director of the Investment Fund of Denmark for Developing Countries (IFU), Oleksii Parkhomchuk, writes NikVesti.

During the meeting, the head of the PSFU separately presented the investment opportunities of the Mykolaiv Oblast, as Denmark is engaged in its restoration.

«This southern region is rich in potential and objects of privatization, in particular, we are talking about the Mykolaiv Alumina Plant — the largest in Ukraine and one of the largest non-ferrous metallurgy enterprises in Europe,» says the Foundation's publication.

It is noted that more than 100 Danish companies are currently working in Ukraine and are investing in capacity.

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«However, we strive to develop our cooperation, that is why PSFU is ready to present our new objects to Danish investors, including the objects of large privatization Hotel «Ukraine» and the United Mining and Chemical Company, as well as the Land Bank project,» it is noted in notices of the Foundation.

In turn, Ambassador Ole Egberg Mikkelsen expressed the interest of Denmark and investment funds to cooperate with the State Property Fund of Ukraine in the spheres of privatization and lease of state real estate and land.

«The parties will continue cooperation on specific cases,» the State Property Fund notes.

It should be noted that in the publication of the Ministry of Foreign Affairs of Denmark, based on the results of the meeting with the State Property Fund of Ukraine, it was reported that the Embassy is ready to «open a new page of relations, as well as maintain contact with potential Danish investors who are studying business opportunities in Ukraine.»

Ambassador Ole Egberg Mikkelsen and Director of IFU Oleksii Parkhomchuk, photo of the Ministry of Foreign Affairs of Denmark

Nationalization of the Mykolaiv Alumina Plant

On February 16, 2023, the Supreme Anti-Corruption Court made a decision regarding the nationalization of the Moscow State Mining and Mining Industry. However, the lawyers who defended the interests of the Mykolaiv Alumina Plant filed six appeals against the decision of the court of first instance. Ultimately, on June 21 of last year, the Appellate Chamber of the Higher Anti-Corruption Court rejected appeals against the decision of the court of first instance regarding the confiscation of the corporate rights of the Mykolaiv Alumina Plant. Therefore, the decision to confiscate one hundred percent of the capital of the plant and its related enterprises became final.

A year after the corresponding court decision, in March 2024, Ukraine completed the process of nationalization of the Mykolaiv Alumina Plant (MAP), which was confiscated from the Russian oligarch Oleh Derypaska.

According to the data of the Unified State Register of Legal Entities, from March 20, 2024, the State Property Fund of Ukraine became the sole founder of the enterprise.

It should be noted that MAP actually stopped its work at the beginning of the full-scale invasion, and the company's corporate rights were under arrest from June 2022. In May 2023, the head of the Mykolaiv regional administration, Vitalii Kim, said that only 300 employees remained at the plant out of the 6,000 that were there before the war. They are mainly engaged in the protection and maintenance of sludge fields.

As you know, «Mykolaiv Alumina Plant» LLC is one of the biggest air polluters in the region. During 2021, the enterprise released 2,672.7 tons of pollutants into the atmosphere, which is 140.9 tons more than in 2020. The main pollutants emitted by the enterprise in 2021: nitrogen compounds — 1,345.1 tons, substances in the form of suspended solid particles — 756.6 tons, carbon monoxide — 316.7 tons, metals and their compounds — 234.8 tons.

The head of the Mykolaiv RMA, Vitalii Kim , wants the Mykolaiv alumina plant to produce raw materials for the production of aluminum in Europe after the transition to state ownership.

Currently, 400 of the five thousand employees remain at the enterprise. Their main task is to support two sludge storage facilities located on the territory of the MAP.