Demurinsky Mining and Processing Plant, Previously Owned by Russian Oligarch, Sees Net Loss Increase by 2.5 Times in a Year

The Demurinsky Mining and Processing Plant, which was formerly under the ownership of Russian billionaire Mikhail Shelkov, has faced considerable financial setbacks in 2025, culminating in a net loss that has surged by 2.5 times. According to the State Property Fund of Ukraine, the company's net revenue from product sales for 2025 amounted to 154.07 million hryvnias, marking a 15% decline from the previous year.

Data reveals that the net loss for the company reached 278.67 million hryvnias in 2025, a significant increase compared to 2024. As of December 31, 2025, the company's creditor debt stood at 142.5 million hryvnias, indicating the financial difficulties that the plant is currently experiencing.

It is noteworthy that in February 2023, the Appellate Chamber of the High Anti-Corruption Court of Ukraine ruled to transfer all assets of LLC Demurinsky Mining and Processing Plant to the state. Previously, the company was owned by Russian billionaire Mikhail Shelkov, who controlled the plant through the Russian Corporation VSMPO-AVISMA, the largest titanium producer in the world.

Before the onset of the full-scale war in Ukraine, Shelkov's structures attempted to conduct a fictitious sale of the plant; however, the Russian oligarch retained effective control over the asset. Importantly, Ukrainian sanctions against Shelkov were imposed back in June 2021, complicating his ability to manage the enterprise.

Currently, according to information from the State Property Fund, the Demurinsky Mining and Processing Plant is preparing for privatization. However, the auction for the sale of the facility has not yet been scheduled, raising concerns about the future of the enterprise and its financial stability.

The Demurinsky Mining and Processing Plant is one of the largest mining and processing enterprises in Ukraine, registered on May 30, 2001. Since 2006, the company has been engaged in the development of the Vovchansk complex alluvial titanium-zirconium deposit, located in the Dnipropetrovsk region, specifically the Northern and Central deposits.

The plant holds a special permit for the use of subsoil for the extraction of titanium-zirconium ores, which are utilized in the production of zirconium, rutile, ilmenite, distene-sillimanite, and staurolite concentrates. This permit is valid until July 29, 2031, providing the enterprise with a certain outlook for future activities; however, the financial results of recent years raise concerns.