State-owned rail monopoly Ukrzaliznytsia has listed 16 unprofitable real estate assets for sale, the company announced via its website on Sept. 27.
This is the first time that Ukrzaliznytsia auctions off its loss-making premises.
Ukrzaliznytsia found itself on the verge of default this July, with total debts of $1.5 billion. Despite a partial recovery after the pandemic-hit year of 2020, the company’s accounts were $53 million in the red for the first half of 2021.
The buildings on sale include grocery shops, pharmacies, an apartment block and a sports club. The auctions will be held through the ProZorro transparent procurement system. The combined starting price of the objects on sale is $1.2 million.
The first five auctions were scheduled for Sept. 27. As a result, two assets have been sold for over $630,000.
The next round of four auctions is expected on Oct. 5.
Ukrzaliznytsia’s management have faced repeated criticism over the slow pace of reform at the bloated state-owned enterprise, which still has nearly 250,000 employees despite 9,000 job cuts during the COVID-19 pandemic. Critics say that the company needs to be split into separate entities.
