The Ukrainian State Property Fund (SPFU) auctioned off the iconic Hotel Ukraine in central Kyiv for UAH 2.5 billion ($60.2 million) to local firm Ola Fine.
The starting price for the hotel complex, which spans an area of 22,500 square meters, was UAH 1.05 billion, the SPFU said in a press release on Wednesday. The hotel has 365 rooms, six conference halls, a business center, and various amenities.
The sale, which drew three bidders, marks the first online auction for large-scale privatization in Ukraine in the ProZorro e-auction system, which was created in 2016 in a push to maximize transparency and prevent corruption.
Under the terms of the sale, the buyer must preserve the core business of the hotel, pay off within six months UAH 14.7 million in back wages and tax debts, settle overdue accounts payable totaling UAH 21 million, and give social guarantees to employees.
Ola Fine is reportedly controlled by Ukrainian businessman Maxim Krippa, the owner of several high-profile assets including the esports team NAVI. Krippa recently also acquired the Parus business center in Kyiv.
In the coming period, the SPFU plans to hold large-scale privatization auctions for the United Mining and Chemical Company, aerated concrete products maker Aeroc, and Demurinsky Mining and Processing Plant.
In a LinkedIn post, Ukrainian Economy Minister Yulia Svyrydenko said the sale will also raise UAH 447.1 million in VAT for the government, which is struggling to meet basic needs as it pays for the war with Russia.
"Our goal is to raise 4 billion UAH through privatization this year," she said. "Between January and August, the budget has already received 2.4 billion UAH. This is the result of 275 successful auctions."
