Ukraine has announced an auction for the privatization of the country's largest manufacturer of electromagnetic switches.

The State Property Fund of Ukraine (SPFU) announced the auction for the privatization of the Kharkiv state plant "Radiorele" – the largest manufacturer of switching equipment in the country, reported the fund on February 3.

The Ukrainian government has allocated 3.2 billion UAH ($76 million) in the 2025 budget from privatization proceeds, which includes the sale of both small and large assets at auctions.

"Radiorele" produces low-current miniature electromagnetic switches and relays used for monitoring voltage, current, and temperature in electrical networks. The plant has previously been put up for auction but has yet to find a buyer.

The auction for 100% of the plant's shares will take place on February 4. Its starting price is set at 234.4 million UAH ($5.6 million), factoring in debts from the last six months.

As of September 30, 2024, the company's debt amounted to 2.4 million UAH ($57,339), including salary arrears of 755 thousand UAH ($17,933) and debts to the Ukrainian budget of 697 thousand UAH ($16,555).

According to the fund, the new owner must commit to retaining all 66 employees of the company for the next six months.

At the end of last year, Ukraine privatized several well-known state assets, including the iconic hotel "Ukraine" in the center of Kyiv and the titanium giant "UMCC-Titanium."

Businessman Maksym Krippa purchased the hotel "Ukraine" on September 18 for $60 million. On October 9, "UHHK-Titan" was sold to "Kremin Ukraine" for $96 million.

Despite a few recent significant sales under privatization, the country's efforts to offload its assets over the years have been slow. Announced auctions have failed due to a lack of participants.

After Krippa's company Ola Fine paid for the hotel "Ukraine," the fund's revenue plan for 2024 from privatization exceeded the planned target for the first time in many years.

Background. We have covered more on this topic in the Mind Explains section in the article "SPFU sells the only manufacturer of engine sleeves in Eastern Europe. What are the conditions for the privatization of 'Motordetal-Konotop'?"