The State Property Fund (SPF) of Ukraine announced the complete transfer of funds from the sale of the "Ukraine" hotel to the state budget.
The auction winner, LLC "Ola Fine," owned by the esports team NAVI's Maxim Krippa, paid a total of 2 billion 511 million 777 thousand 888 UAH for the property, along with an additional VAT amounting to 502 million 355 thousand 578 UAH.
As reported, on September 18, 2024, Ukraine held its first online auction for large-scale privatization through the ProZorro.Sales system. Three participants competed for ownership of the hotel complex, with the starting price increasing 2.4 times — from 1.05 billion UAH to 2.51 billion UAH.
"The successful conduct of the auction and the full payment for the 'Ukraine' hotel confirm the readiness of the Ukrainian market for major privatization. The competition among participants ensured a rise in the asset's value and its market price. The funds raised will be directed, in particular, to support the Armed Forces of Ukraine. Importantly, thanks to privatization, the hotel receives a new life and development prospects," said acting head of the SPF Ivanna Smachilo, as quoted in the release.
The unified property complex includes a 14-story hotel with nearly 22,500 sq.m. of space, featuring 365 rooms, a restaurant, a business center, six conference halls, and additional infrastructure, including secure buildings, non-residential structures, parking lots, and other facilities.
“For me, purchasing the 'Ukraine' hotel is not merely an investment but a conscious and thoughtful decision as a citizen of Ukraine. I believe it is essential to support the country during wartime in any way possible. This is more than timely, considering that the funds from privatization will go towards supporting the Armed Forces and preserving Ukraine's sovereignty,” commented Maxim Krippa, owner of LLC "Ola Fine," to the Interfax-Ukraine agency.
According to the results for January-March 2024, the net loss of the state enterprise "Hotel 'Ukraine'" amounts to 3.1 million UAH. Additionally, as of March 31, it has a salary debt (3.8 million UAH), overdue accounts payable (21 million UAH), and debts to the budget, specifically personal income tax (4.7 million UAH), tourist tax (1.4 million UAH), and land tax (4.5 million UAH).
The privatization conditions stipulate the preservation of the enterprise's primary activity (hotel operations) for five years, the settlement of salary and budget debts within six months from the date of ownership transfer, the provision of social guarantees to employees in accordance with the law, and the prohibition of their dismissal for six months, as well as compliance with environmental protection legislation.
In April, the Cabinet of Ministers of Ukraine included the state enterprise "Hotel 'Ukraine'" in the list of large privatization objects. In May, the auction commission set the starting price for the privatization of the "Ukraine" hotel at 1 billion 47 million 637 thousand 152 UAH.
According to Opendatabot, the owner of LLC "Ola Fine" is JSC "ZNVKIFF 'Ars Capital'," with the ultimate beneficiary being Maxim Krippa, the owner of the esports team NAVI. "Ola Fine" also owns the Kyiv business center "Parus."