The State Property Fund has begun looking for warehouses for businesses: How much potential space is available

The State Property Fund has begun auditing warehouse facilities of state enterprises to identify the list of spaces that could be transferred to meet the needs of companies recently affected by Russian shelling.

On the government’s instruction, the fund has started auditing warehouse facilities that are on the balance sheets of state enterprises under its management, said Dmytro Natalukha. Formally, the warehouses that a damaged business could potentially use – there are quite a lot, several hundred thousand square meters. Also read: Should we expect a shortage of goods after Russia’s strikes on company warehouses? "But in reality, all of this must be physically checked, the condition and suitability of these spaces must be determined, their real physical accessibility for transfer to business. On paper it is one thing, but in reality it may be completely different," noted the head of the fund. Therefore, next week the fund plans regional trips for inspection, studying the situation, checking these assets and the available lease area. The State Property Fund is also working on defining the legal model – how these spaces should be transferred for business use. "We considered the possibility of conducting auctions for sale of lease rights to businesses, as well as the possibility of transferring these assets for rent (conditionally for 1 hryvnias per month) to a designated state company that could sublease all of this to the business. But it is important not to create a space for corruption. So we are working on lawful options," commented Dmytro Natalukha. Also read: Why did Russia intensify strikes on gas stations?"

Reminder: 5 August Russia carried out another shelling using drones and ballistic missiles. Specifically, the strike targeted warehouse and production facilities of large chain companies – Epicentr, Rozetka, Nova Poshta, Silpo. The ceramic tile manufacturing plant of Epicentr Group was halted. Earlier in June, Russia attacked logistics centers of the Atb retail chain network. Other well-known brands, such as Puma and Intertop, were affected as well. Puma reported a possible deficit of certain goods. To counter Russian strikes, businesses will diversify storage locations for inventories and their logistics routes, said Andriy Zhuk, head of the Ukrainian Retailers Association. Changes in logistics may lead to higher costs for businesses and higher prices for goods, commented Maksym Havryushyn, head of the Ukrainian Council of Shopping Centers. In response to Russia’s attacks, 5 August the government instructed the Ministry of Economy, ARMA, and the State Property Fund to prepare a list of state objects with warehouses that could be transferred for business use.