Ukraine is selling a factory seized from a Putin-linked oligarch, which previously supplied titanium to Russia.

The Ukrainian government has included the titanium plant "VSMPO Titan Ukraine" in its list of major privatizations. This enterprise was previously owned by the sanctioned Russian businessman Mikhail Shelkov.

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This information became known thanks to data from the State Property Fund of Ukraine.

It was noted:

- 100% of the company's authorized capital is being put up for privatization;

- the estimated value of the privatization object is no less than 271.72 million UAH.

"The auction commission will set the price and terms of sale and send them to the Government for approval. After that, the date of the privatization auction will be announced. The auction will take place on the ProZorro.Sales trading platform, ensuring transparency and openness of the trading process," the message states.

It is emphasized that all funds received from the privatization will be credited to the State Budget of Ukraine. After that, they will be "allocated to the fund for eliminating the consequences of armed aggression."

The plant was confiscated from a Russian oligarch

The plant being privatized is located in the Dnipropetrovsk region. Its main activities include the production of steel:

- pipes;
- hollow profiles;
- fittings.

"VSMPO Titan Ukraine" is the Nikopol seamless titanium alloy pipe plant that was confiscated from Russian oligarch Mikhail Shelkov. As noted by the Fund, the enterprise was seized for the benefit of the state by the decision of the High Anti-Corruption Court on January 23, 2023.

The oligarch secretly supplied Ukrainian titanium to Russia for missile production

In the summer of 2024, Shelkov was announced as a suspect in organizing the supply of strategic products from Ukraine to military enterprises in the Russian Federation. His "work" and that of his accomplices are considered as financing actions that threaten the constitutional order and territorial integrity of Ukraine.

Previously, the Security Service of Ukraine had already informed Shelkov of suspicions regarding his involvement in the supply of Ukrainian titanium raw materials to the Russian Federation for the production of "Kalibr" missiles.

The investigation established that in 2020-2021, Shelkov organized the supply of titanium-containing concentrates worth nearly 90 million UAH to Russian companies. The recipient enterprises were involved in:

- the manufacture of weapons for the needs of the Russian Ministry of Defense;
- meeting the needs of the defense industry;
- creating strategic reserves for the aggressor country for waging war against Ukraine.

The supplies of raw materials were conducted secretly. To conceal them, the suspects developed a special scheme. Thus, "on paper," titanium-containing concentrates were allegedly supplied to an Austrian company, as evidenced by the contracts concluded with it.

In reality, however, the raw materials were immediately shipped to enterprises in Russia. They, in turn, paid for the raw materials to the accounts of the Austrian company at market prices. This Austrian company then paid the Ukrainian supplier at reduced prices.

Mikhail Shelkov and business in Ukraine: what is known

Oligarch Shelkov owned the Demurinsky Mining and Processing Plant (GOK) since 2012. The enterprise is one of the largest titanium producers in the world and was part of the Russian state corporation "Rostec."

After the onset of the full-scale invasion of the Russian Federation into Ukraine in 2022, the entire property complex of the GOK was seized as part of a criminal case against Shelkov. Also, 100% of corporate rights, vehicles of the GOK, and funds in the company's bank accounts were arrested.

In 2023, this property and assets were seized for the benefit of the state by the decision of the High Anti-Corruption Court. Now the plant is owned by Ukraine and is managed by the State Property Fund. The asset is being prepared for privatization.