Former Odesa Port-Side Plant tolling partner Agro Gas Trading applies for privatization auction

Agro Gas Trading (AGT), which operated the state-owned Odesa Port Plant (Pivdenne, Odesa region) under a tolling arrangement in 2019–2021, has submitted an official application and full set of documents, and paid the registration fee to participate in the November 25, 2025 privatization auction of Odesa Port-Side Plant. The starting price has been set at UAH 4.48 billion.

"This privatization round is a real opportunity to bring Odesa Port-Side Plant out of stagnation and put it on a path of sustainable development, to make it an efficient and competitive industrial asset. We are entering the auction with a clear plan to modernize production, improve operational efficiency, and ensure stable operations," said AGT partner Oleksandr Horbunenko, as quoted in the company's press release on Tuesday.

AGT has signed a non-disclosure agreement (NDA) on its part and is awaiting countersignature from state authorities.

The company noted that the current privatization round could succeed if the auction is conducted under transparent rules, with unrestricted access to energy resources and logistics, fair risk allocation, and guarantees of uninterrupted production during the transfer of ownership.

According to AGT, stable Odesa Port-Side Plant operations would help balance Ukraine's domestic fertilizer market and strengthen the country's export position.

"In 2019–2021, we invested substantial resources to support Odesa Port-Side Plant's restart and operations. That disrupted privatization process demonstrated one clear thing: to preserve the plant's strategic role, what's needed is not temporary partnership but responsible long-term management with transparent commitments to the state and the workforce," said AGT partner Volodymyr Kolot.

AGT stated it has extensive practical experience in gas, mineral fertilizers, agricultural commodities, and logistics markets; a successful history of cooperation with Odesa Port-Side Plant; and the capacity to scale that experience into systematic energy-efficiency, modernization, and port-infrastructure development solutions for the plant.

"The company's goal is to create a modern hub for capital and expertise in the Black Sea region—one that accelerates Ukraine's recovery and boosts its competitiveness on global markets," the release concluded.

During its cooperation with Odesa Port-Side Plant in 2019–2021, AGT supplied 1.42 billion cubic meters of natural gas, enabling production of 1.735 million tonnes of urea and 187,000 tonnes of ammonia, over 90% of which was exported. AGT also made additional payments to the plant, allowing it to reduce debt to Naftogaz Group by UAH 68.1 million.

Odesa Port-Side Plant had been idle since April 2018, when operations halted due to a contract dispute between the tolling company Ukrainian Energy Company and Ukrtransgaz. In August 2019, the plant resumed production under a tolling arrangement with AGT, selected through a competition, and restarted one ammonia and two urea units.

Other bidders included IBE Trade Corp (the United States), Maddox SA (Switzerland), OKKO Contract LLC, Socar Energy Ukraine LLC, and Yug-Gaz LLC (all Ukraine). OKKO and SOCAR were denied participation for lacking fertilizer-sales experience.

The tolling contract was extended several times, but attempts to change the tolling partner via new tenders proved unsuccessful, despite repeated State Property Fund (SPFU) announcements and leadership changes. As a result, Odesa Port-Side Plant again shut down in September 2021.

In late September 2025, the SPFU announced the sale of a 99.5667% stake in Odesa Port-Side Plant through an online auction on the Prozorro.Sale platform, scheduled for November 25, 2025. Bids are accepted until 8 p.m. on November 24, with a guarantee deposit of UAH 224.43 million.

The asset package includes 45 units of real estate and infrastructure, such as a greenhouse complex, wellness center, the Carpathian Zori resort in Yaremche, and a rowing-training base. Total building space amounts to 285,400 sq m, while 32 land plots cover 262.9 ha (252.4 ha under permanent use). As of June 30, 2025, the plant employed 1,436 people.

Odesa Port-Side Plant generated UAH 322.63 million in revenue in January–June 2025 but posted a net loss of UAH 280.79 million. In 2024, revenue rose to UAH 944.22 million from UAH 494.57 million a year earlier, yet net losses widened to UAH 1.839 billion from UAH 1.094 billion.

As of mid-2025, the plant's wage arrears stood at UAH 184.39 million, tax debts at UAH 182.44 million, and overdue payables at UAH 16.62 billion.

The auction winner must maintain core operations for at least five years, invest a minimum of UAH 500 million, settle wage and tax arrears within a year, gradually repay overdue debts, and provide guarantees for employees and environmental compliance.

Acting CEO Yuriy Kovalsky told NV Business in August 2025 that the plant's management attempted to restart one of its two ammonia units in August 2024, but the effort failed. Odesa Port-Side Plant subsequently shifted to grain transshipment, which became its only revenue source until late June 2025, when Russian airstrikes severely damaged warehouses, halting operations.

According to Kovalsky, Odesa Port-Side Plant's grain-handling partner is trader V Agro LLC. In the 2024–2025 marketing year, about 638,000 tonnes of grain were handled, including 625,000 tonnes of corn and 12,700 tonnes of soybeans.

The acting CEO added that Odesa Port-Side Plant has significantly reduced costs, sold non-core assets, and is actively negotiating with creditors, including Naftogaz Ukrainy, to prepare a viable debt structure of about UAH 2.5 billion for the future investor.

For security reasons, Odesa Port-Side Plant does not plan to resume production in the near term but is maintaining full technical readiness to restart quickly once feasible. Kovalsky estimated the cost of restarting the plant at roughly the price of 30 million cubic meters of gas.

Aside from the state's 99.5667% stake, 0.0021% is owned by Concorde Capital LLC and 0.4312% by individual shareholders.

Ukraine has made multiple failed privatization attempts. In 2009, Nortima, a company linked to former PrivatBank owner Ihor Kolomoisky, won the UAH 5 billion tender but was later disqualified by the tender committee for alleged collusion and underpricing.

In 2016, the government twice offered its 99.567% stake: first in July at UAH 13.175 billion, then in December at UAH 5.16 billion, both times without success. The lack of investor interest was partly due to over $250 million in debt owed to Dmytro Firtash's companies, confirmed by the Stockholm Arbitration Court.

In July 2018, the SPFU appointed a consortium led by Pericles Global Advisory, including White & Case LLP, Kinstellar, KPMG Ukraine, and SARS Sarita I, as advisors for the Odesa Port-Side Plant privatization. Before the pandemic, the sale had been tentatively scheduled for August 2020, later postponed to 2021, but never materialized. In the years before the war, fertilizer production at Odesa Port-Side Plant continued intermittently under tolling arrangements.