AGT Reports Systemic Obstacles to Participation in the Odesa Port Plant Privatization Tender: The Procedure Is Losing Signs of Transparency

Agro Gas Trading reports the creation of artificial obstacles that, in effect, deprive the company of the possibility to participate in the privatization tender of JSC “Odesa Port Plant” (OPP). Despite meeting all requirements and submitting a complete set of documents, the company has faced practices that contradict the principles of openness and fair competition.

To participate in the auction, AGT fulfilled all statutory requirements: it submitted a complete document package and paid for access to the information package. Instead of a standard procedure, however, the company encountered a series of unfounded complications.

Specifically, from the outset of the submission process, Agro Gas Trading received three different versions of the same Non-Disclosure Agreement (NDA) from SmartTender (the electronic auction platform) with conflicting terms — including a requirement to sign the agreement using a “special key” not provided for by any regulations. In addition, SmartTender representatives made oral statements of refusal, demanded payment in an amount three times higher, and requested additional documents not stipulated either by the tender conditions or by the Law of Ukraine “On Privatization of State and Communal Property.” Ultimately, the SmartTender platform explicitly stated that it reserves the right not to execute an NDA with AGT “under any conditions.”

In addition, AGT was asked to pay an extra “security payment” — a mechanism that does not exist in the Law of Ukraine “On Privatization of State and Communal Property.” Also improper is the demand addressed to AGT’s authorized signatories to provide a shareholder authorization for signing the NDA. These actions create an artificial opportunity to exclude a tender participant through non-transparent means.

Agro Gas Trading has already submitted an official request to the State Property Fund of Ukraine seeking clarification on whether the SmartTender platform’s requirements comply with Ukraine’s regulatory framework; a request to the National Bank of Ukraine regarding the blocking of the guarantee payment; and a complaint to the Antimonopoly Committee of Ukraine concerning discriminatory practices and violations of the principles of economic competition (within the meaning of the Law of Ukraine “On Protection of Economic Competition”). We note that the NBU did not provide a response within the 30-day period established by Ukrainian law.

In parallel with bureaucratic obstacles, AGT has found itself at the center of a wave of media attacks that have appeared each time the company approached participation in the OPP privatization. Mutually exclusive narratives were injected into the public space simultaneously — ranging from alleged “links with Kernel,” which is the only other potential tender participant, to speculation about “influence by Dmytro Firtash,” although the company’s cooperation with OPP began long before any mention of that surname in the privatization context. Articles have also amplified insinuations about personal or business ties between AGT partner Oleksandr Horbunenko and Tymur Mindich. In reality, as confirmed in the official position, neither Horbunenko nor companies associated with him have ever had any relations with Mindich or his structures.

The appearance of these three mutually exclusive narratives within the same period is not accidental — it is an attempt to create an informational background that discredits an independent privatization participant and reduces competition at the auction.

The same tactic was previously used during tenders to select a tolling supplier for OPP. In 2020–2021, a campaign of discreditation was also launched against the company due to AGT’s unwillingness to extend tolling agreements — baseless accusations, emotional “investigations,” and information dumps. The scenario is repeating: as soon as AGT submits documents, a campaign begins aimed at casting doubt on the reputation of an independent participant that does not belong to any business group and is not embedded in any system of influence.

We remind that during 2019–2021 AGT supplied OPP with over 1.4 billion cubic meters of gas, for the processing of which it paid the plant over UAH 4.5 billion. This enabled the plant to produce over 1.7 million tons of urea and nearly 200 thousand tons of ammonia. During the cooperation period, AGT paid more than UAH 2 billion in taxes to budgets at all levels. Over the specified period, AGT fulfilled all obligations to OPP, which allowed the plant to return to a profitability trajectory.

Nevertheless, every attempt by AGT to participate in tenders for the selection of a tolling (gas) supplier for OPP during 2019–2022 was accompanied by administrative and media pressure. Today we again observe the reproduction of these practices for reasons that remain unclear.

AGT stands for a transparent and competitive privatization of JSC “Odesa Port Plant,” equal access for all participants, and adherence to the principles of competition. The company is ready to provide all documents confirming instances of obstruction of access to participation in the privatization auction.