---
title: "Schönborn Palace and Kuyalnik Sanatorium: Ukraine Launches Concession Pilot Project to Save Historical Landmarks"
description: "Ukraine launches a pilot concession project for Schönborn Palace and Kuyalnik Sanatorium 🏰🇺🇦. The State Property Fund is seeking private investors to restore historical landmarks while retaining state ownership. This is the first step towards large-scale public-private partnership in the culture and tourism sector."
date: 2026-07-27T16:14:00.000Z
lang: en
url: https://xab.info/en/posts/schonborn-palace-and-kuyalnik-sanatorium-ukraine-launches-concession-pilot-project
tags: [ukraine, fgiu, dmytro-natalukha, shenborn-palace, kuyalnik-sanatorium]
publisher: "XAB.info"
---

# Schönborn Palace and Kuyalnik Sanatorium: Ukraine Launches Concession Pilot Project to Save Historical Landmarks

![Schönborn Palace: a historic building included in Ukraine's pilot concession project to restore cultural heritage](https://xab.info/media/2026/07/27/dvorec-shenbornov-i-sanatoriy-kuyalnik-ukraina-zapuskaet-koncesiiu/dvorec-shenbornov-i-sanatoriy-kuyalnik-ukraina-zapuskaet-koncesiiu-1.webp)

Ukraine has launched a large-scale experiment in managing unique state assets. The State Property Fund (SPF) plans to transfer two landmark objects into concession: the Schönborn Palace in Zakarpattia and the Kuyalnik Sanatorium in the Odesa region. The initiative aims to attract private capital for restoration and modernization while preserving state ownership.

As State Property Fund Chairman Dmytro Natalukha stated in an interview, the agency is seeking new management tools for assets that are legally difficult or impractical to sell. "We manage several assets that we cannot sell due to legislative restrictions because they possess historical and cultural value," the fund head explained.

### New Department and Public-Private Partnership

To implement this strategy, the SPF created a special department from scratch last month. Until now, the agency had not been involved in public-private partnership (PPP) initiatives. The essence of the idea is to attract private expertise and investment without transferring ownership rights. The state remains the owner, while the business manages the object.

Dmytro Natalukha emphasized that such experience is practically non-existent in Ukraine, whereas in Europe, it is a standard. He cited Austria, the Czech Republic, Spain, and France as examples where similar objects are successfully converted into hotels, restaurants, and museums.

### Schönborn Palace: The First Pilot Project

The Zakarpattia Schönborn Palace has become the fund's first pilot project in the PPP direction. The SPF has already announced a competition for managing the castle at several venues and forums. According to Natalukha, at least two investors have shown interest in taking the object into concession.

Successful implementation of this project will set a precedent. The head of the SPF noted that in case of success, the fund could collaborate with other ministries that have similar historical values on their balance sheets. In particular, the Ministry of Defense of Ukraine has three or four estates and castles that could potentially follow the same path.

### Kuyalnik Sanatorium: A Challenge for Investors

The second pilot project is the Kuyalnik Sanatorium in the Odesa region. Dmytro Natalukha admitted that the object is in a deplorable state and requires large-scale modernization for its restoration, which the state cannot finance independently under wartime conditions.

"Kuyalnik" needs a team dedicated exclusively to this object to determine its future: whether it will become a SPA resort or something else. The fund head acknowledged a shortage of internal personnel: in the world, only a few dozen companies possess the competencies to build such restoration processes, and the SPF staff lacks such specialists. Therefore, attracting a private partner with the corresponding expertise becomes the only way out.

Ukrainian legislation on concessions and public-private partnerships allows transferring property to investors for management for a long term. At the same time, the investor undertakes the obligation to update the object and preserve its intended purpose.