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The iconic “Hotel Ukraina” in Kyiv, located on Independence Square, was recently sold in an auction for Hr 2.5 billion ($60 million). The hotel had been state-owned since it was built in 1961.
You may be wondering why the sale happened during a full-scale war. It is actually part of the government‘s “Big Privatization” initiative to raise funds for the country’s wartime budget needs by selling off state-owned properties.
Privatization is a sensitive topic in this region. While it was meant to help transition from a planned to a market economy after the collapse of the USSR, it mostly benefited a few wealthy individuals who bought valuable state assets at low prices. Many major enterprises in the country have still not been privatized, and the government remains the largest owner of assets, with over 3,000 state-owned companies.
During the current war, the state has also nationalized some companies, particularly those owned by Russians or other sanctioned individuals. The sale of Hotel Ukraina is one of the first major privatizations in recent years, which is seen as a success for the government’s efforts.
The highest bidder for the hotel was a relatively unknown Ukrainian businessman named Maksym Krippa, who has been acquiring real estate in Kyiv. He is a part-owner of the nearby Dnipro Hotel and bought the Parus skyscraper in 2023. He also owns several smaller business centers in the city. Krippa is also involved in the e-sports industry and owns the popular Stalker video game series. In a brief interview with Forbes Ukraine, he mentioned his interests in IT.
Krippa did not reveal his plans for the hotel, which requires significant investment to modernize, but he assured Forbes that he and his team have a plan for its development. However, he also stated that no renovations will begin until the war is over and Ukraine is victorious. This means that while the property has changed hands, its development is still a distant possibility.
In other news, the recent tax increase passed in the first reading has caused concern among business owners. Tatyana Izovit, chairman of the board of the Ukrainian Association of enterprises of textile & leather industry, expressed her worries to Liga.net, stating that it will greatly impact legitimate businesses.
Read More @ kyivindependent.com