An attempt by Ukraine’s cash-strapped government to raise revenue by privatising a chemical plant flopped on Tuesday, damaging the country’s prospects of pulling out of recession amid bitter political rivalries and deadlock.

Kiev’s privatisation agency cancelled the privatisation of Odessa Portside Plant after a company representing Igor Kolomoisky, a domestic billionaire, offered $600m, outbidding Russia’s Sibur petrochemical group and another Russian businessman, Konstantin Grigorishin.