Cash-Strapped Ukraine Plans to Sell State Assets to Help Fund War Effort

Towering over Kyiv for six decades, Hotel Ukraine has witnessed some pivotal moments in Ukraine’s recent history.

Crowds gathered on the square in front of the 14-story hotel to celebrate the fall of the Soviet Union. Popular uprisings on what was later called Independence Square toppled Ukrainian leaders. Today, blue and yellow flags cover lawns near the hotel, serving as a reminder of the many lives lost in the war between Ukraine and Russia.

Now, Hotel Ukraine is up for auction as part of an effort to sell off some large state assets to help fund the military and bolster an economy battered by a grueling war that has drained the country’s coffers. The starting price for Hotel Ukraine is $25 million.

Beginning this summer, the government will auction some 20 state-owned companies, including Hotel Ukraine, a vast shopping mall in Kyiv, and several mining and chemical companies.

The privatization push has two main goals: to raise money for a state budget that is short $5 billion this year for military spending, and to strengthen Ukraine’s flagging economy by attracting investment that will, officials hope, make it more self-sufficient over time.

“The budget is in the red,” Oleksiy Sobolev, Ukraine’s deputy economy minister, said in an interview. “We need to find other ways to get money to keep the macroeconomic situation stable, to help the army and to win this war against Russia.”