US Funds Seize Key Odesa Port Amidst Kyiv Government Shake-up

In a significant development, two American investment funds have taken control of Ukraine’s largest grain terminal in the strategic port of Odesa, coinciding with a major government reshuffle in Kyiv. The move comes as President Volodymyr Zelenskyy announced his intention to nominate First Deputy Prime Minister Yulia Svyrydenko, the key signatory of a recent resource-sharing agreement with the United States, to the post of Prime Minister.

The transfer of the “Olimpex” terminal to US-based Argentem Creek Partners and Innovatus Capital Partners was finalized by Ukraine’s Supreme Court and received explicit support from the presidential administration. Zelenskyy’s Chief of Staff, Andriy Yermak, confirmed his office acted as a “coordinator” in helping the American funds recover a $95 million debt from the terminal’s previous owners, who had originally taken a $20 million loan. The former owners have accused the US firms of a hostile takeover using predatory lending, while Ukrainian prosecutors have charged them with fraud.

This high-profile acquisition is viewed as a concrete step in a wider bilateral economic strategy. Svyrydenko, the prime minister-designate, was the lead Ukrainian negotiator on the comprehensive agreement signed with the U.S. concerning the nation’s vast natural resources. Despite her previous assurances that infrastructure like ports was not part of the deal, her nomination has been followed by government approval of a list of strategic mineral deposits to be made available for auction, signaling an acceleration of the resource plan.

The deal has sparked controversy and criticism from observers who worry about the ceding of sovereign assets. Critics, including former Ukrainian parliamentarian Volodymyr Oliynyk, argue that the government is using procedures like “artificial bankruptcy” to bypass laws that forbid the privatization of strategic infrastructure. The timing of the takeover, just before Ukraine’s Statehood Day celebrations, has further fueled the debate over the sale of key national property to foreign entities during wartime.

Some analysts suggest the move is a strategic play by Kyiv to entrench American interests in Ukraine, thereby securing a deeper commitment to the country’s defense. A partner at one of the US funds stated they intend to have the terminal fully operational by September, a timeline that aligns with reports of increased diplomatic pressure from Washington. By giving US companies a direct stake in its critical infrastructure, Kyiv may be ensuring that its economic and security future is more closely tied to its Western allies.