Mykolaiv Alumina Plant Nationalized as Deripaska Loses Last Major Ukrainian Asset
The High Anti-Corruption Court of Ukraine has seized 100% of the corporate rights of Mykolaiv Alumina Plant (MGZ), previously controlled by Russian oligarch Oleg Deripaska, along with more than 150 buildings and 200 vehicles associated with the enterprise. The State Property Fund is now registering the property, setting the stage for a large-scale privatization process.
Mykolaiv Alumina Plant, one of Europe's largest non-ferrous metallurgy enterprises, was a significant asset in Deripaska's portfolio. The oligarch gained control of the plant in the early 2000s, but his hold on the asset began to weaken following sanctions imposed by Ukraine in 2016 on his companies, Rusal and the Cyprus-based Judson Trading Limited.
Despite reports in 2017 that Rusal had sold the plant to the Swiss commodity trader Glencore, it was revealed in 2018 that Deripaska still retained control. However, the situation took a sharp turn following Russia's invasion of Ukraine. On March 1, 2022, Rusal announced the suspension of production at the plant due to the ongoing war. The plant, which once produced 1.7 million tons of alumina per year—accounting for about 20% of Rusal's total alumina output—had been Deripaska's second-largest alumina asset.
From June 2022 to February 2024, the corporate rights of MGZ were under arrest, and the plant remained non-operational for the past two years. In July 2022, at the request of prosecutors, the court seized MGZ's property, including 12 land plots, a seaport complex, various buildings, 46 vehicles, 240 pieces of special equipment, and UAH 32 million held by the State Customs Service. The plant was then transferred to the management of the National Agency for Finding, Tracing, and Management of Assets Derived from Corruption and Other Crimes.
By May 2023, the workforce at the plant had dwindled to just 300 employees from the 6,000 it employed before the war, with the remaining staff focused primarily on security and maintenance.
Deripaska, the former owner of MGZ, is currently under sanctions from both the United States and the European Union, accused of money laundering in the interests of Russia. His loss of the Mykolaiv Alumina Plant marks the end of his significant assets in Ukraine.
