The end of the agro-empire: the state sells Bakhmatyuk’s assets to pay off debts
27 March 18:26
The assets of the Ukrlandfarming agricultural holding and related companies owned by businessman Oleg Bakhmatyuk have been put up for auction. This was the result of the company’s long-term financial difficulties, debt obligations to creditors, and decisions of government agencies to collect debts, Komersant ukrainskyi reports, citing the press service of Oschadbank.
The objects are being sold through the Prozorro.Sale system, an electronic platform that ensures transparency and competitiveness of the process. The proceeds are expected to be used to repay debts to banks, including the National Bank of Ukraine (NBU).
What exactly was put up for sale
Debts secured by the companies’ property were put up for auction:
- PJSC Rise-Maximco;
- PJSC Agroholding Avangard;
- Impevo Foods LLC;
- Pakko Holding LLC.
In total, it involves more than 100 real estate and production assets. Among them:
- elevators – powerful grain storage facilities that provide storage and logistics of grain crops;
- agricultural land – land used for growing grain and oilseeds
- farm complexes – livestock enterprises engaged in the production of milk, meat and eggs;
- administrative buildings – office premises and other commercial real estate;
- infrastructure facilities – warehouses, logistics centers and technical bases.
The total starting value of the assets is estimated at UAH 6 billion, although the price may change during the auction.
Why the assets were put up for sale
There are several reasons for the sale of Bakhmatyuk’s assets:
1. Outstanding debts. After the bankruptcy of Ukrlandfarming’s related companies, the total amount of debt to creditors reached billions of hryvnias. Some of these liabilities are owed to the NBU and other financial institutions.
2. Court decisions and the Deposit Guarantee Fund. The Deposit Guarantee Fund, which is in charge of liquidating banks, initiated asset recovery to cover debts. This was a logical step after the failed restructuring.
3. Government policy on asset recovery. The Ukrainian government is actively working to recover funds to the state budget, especially in times of war and economic instability.
Who may be interested in the assets
The sale of assets has attracted the attention of both Ukrainian and international investors. Potential buyers may include
- agricultural holdings – companies seeking to increase their own grain and oilseeds production capacity;
- processing companies – companies specializing in the production of flour, oil, feed, etc.
- logistics operators – due to the presence of elevators and warehouses, the assets can be used to develop logistics hubs;
- investment funds – market participants looking for assets with the potential for resale or lease.
Economic impact of the sale of assets
1. Increased competition in the market.
The distribution of assets among new owners may increase competition in the agricultural sector, which will have a positive impact on the agricultural market.
2. Investment attractiveness.
Foreign investors may see potential for expanding agribusiness in Ukraine, especially given the availability of fertile land and geographical proximity to European markets.
3. Replenishment of the state budget.
The proceeds from the sale of assets will be used to repay debts, in particular to the NBU, which will be a step towards stabilizing the financial system.
4. Saving jobs.
If the new owners successfully re-profile the enterprises, there is a possibility that the number of jobs will be preserved or even increased.
It is known that the sale at auctions will take place in several stages. The first bidding has already begun, and interested parties can apply for participation through the Prozorro.Sale platform. In the event of a lack of buyers or insufficient competition, prices may be reduced for the second auction.
The Deposit Guarantee Fund will continue to supervise the sale process, ensuring transparency and fairness of the procedures.
Read also: Bakhmatyuk loses appeal against the National Bank in the case for UAH 1.8 billion
What we know about Oleg Bakhmatyuk
Oleg Bakhmatyuk is a well-known Ukrainian businessman, owner of Ukrlandfarming and Avangard, one of the largest agricultural holdings in Ukraine, specializing in the production of grain crops, eggs and egg products. According to Forbes, he was on the list of Ukraine’s richest people.
Bakhmatyuk was born on August 14, 1974, in Ivano-Frankivsk.
In 1996, he graduated from the Chernivtsi Institute of Economics and Law with a degree in business management. In 2005, he graduated from the Ivano-Frankivsk National Technical University of Oil and Gas with a degree in engineering, physics and management.
In 2001, he founded the Carpathian Financial Corporation, which was engaged in wholesale trade in food, alcohol, and petroleum products.
In 2002, Mr. Bakhmatyuk was elected to the Ivano-Frankivsk City Council as a member of the Social Democratic Party of Ukraine. He was a member of the Economic Renaissance faction and a member of the City Council’s Commission on Finance, Prices and Budget Planning.
In 2005, Bakhmatyuk was appointed head of the Department of Expert Evaluation of Investments and Corporate Finance at Naftogaz of Ukraine.
In 2006, he ran for the Verkhovna Rada of the 5th convocation from Lytvyn’s People’s Bloc, but was not elected. Also that year, he was appointed deputy chairman of the board of Naftogaz of Ukraine and bought controlling stakes in regional gas companies: “Ivano-Frankivskgaz, Lvivgaz, Zakarpatgaz, Chernivtsigaz and Volyngaz, which were later sold to Dmytro Firtash’s structures.
Since 2007, he has been the Chairman of the Board of Directors of Avangard Agro Holding (AVANGARDCO INVESTMENTS PUBLIC LIMITED). In 2010, he listed Avangard on the London Stock Exchange and raised $208 million.
In 2011, he founded the UkrLandFarming agricultural holding (as a result of the merger of assets with Avangard).
In early October 2014 , VAB Bank, owned by Bakhmatyuk, announced the need for recapitalization as it began to have problems paying out funds to depositors. The bank applied to the NBU for a stabilization loan, and the NBU Board granted it UAH 1.2 billion. But 40 days after the loan was granted, VAB Bank went bankrupt. The money was not returned to the National Bank.
In November 2019, the NABU notified 10 people of suspicion of misappropriation of the stabilization loan. Among the suspects is the former owner of the bank, Oleg Bakhmatyuk. Later, Bakhmatyuk was put on the wanted list.
In May 2020, the Appeals Chamber of the High Anti-Corruption Court remanded Bakhmatyuk in custody in absentia. However, in June, the Prosecutor General’s Office closed the case against Bakhmatyuk.
In October 2022, the NABU and the SAPO announced that they had served suspicion notices to Roman Nasirov and his advisor Oleh Bakhmatyuk in the case of receiving $5.5 million and more than €21 million in undue benefits for VAT refunds to companies of the agricultural holding. At the official NBU exchange rate at the time of the crime, the amount of money involved was over UAH 722 million.
After that, the businessman left Ukraine. He is currently in Vienna and continues to defend his position that the charges are unjustified and claims political pressure.
In November 2024, Oleg Bakhmatyuk lost his Cypriot “golden passport”. The documents were previously obtained in exchange for investments. The decision was made due to the violations found.
