1 reform = $165 million of Private Investment in the Ukrainian Treasury

Tuesday, June 22, 2021
1 reform = $165 million of Private Investment in the Ukrainian Treasury

Twenty auctions were held under the 2020 law on the privatization of State property. According to the data of the State Property Fund, the budget of Ukraine was increased by 4 times the income of the pre-crisis period

“There are about 3,600 State enterprises in Ukraine. Some of them do not function at all, do not only generate income but, on the contrary, cause damage to the State. These are billions of UAH (national currency) of our taxes. The state can no longer bear the financial burden of unprofitable enterprises. But private businesses, investors, are interested in acquiring such assets. Because private businesses are more mobile, they are responsive to market conditions, they innovate, they are able to make the necessary investments to make them competitive and profitable. Privatization is not just about the State budget. It is both new jobs, and taxes, and the basis for taxation, a new life of enterprises and complex development of territories” informed Dmytro Sennychenko, head of the State Property Fund of Ukraine.

According to analysts of the State Property Fund, in 2021 the Great privatization program will add $437 million to the national budget.

“We believe that this year we are absolutely realistic to target the amount of $437 billion. And my optimism is reinforced by the success of small privatizations (small privatization includes those whose value does not exceed $9 million). On average, the price of the facilities to which it belongs has risen by 200%, and since the beginning of 2020, the state budget has received from small privatization already more than $165 million. This is four times more than in pre-crisis 2019, and eight times more than in 2018” said the head of the Foundation.

“This year we started a joint project with the Ministry of justice on the privatization of non-functional prisons, the privatization of bread-making plants and non-functional alcohol factories under a program of demonopolization of the alcohol industry continues. And here we also have successful cases like the privatization in June of this year of the Dunaievetskyi bread factory for $9 million, the property of the non-working Lviv penitentiary institution for $15 million, etc” concluded Dmytro Sennychenko.

According to prime minister Denys Shmyhal of Ukraine, in 2021 the oil refinery, the combined mining, and chemical company, the factory Bolshevik, and the President Hotel will be auctioned for large privatization.

In total, in 2021, the Great privatization program prepared for the sale of 900 state facilities. The deputy head of the State Property Fund Konstiantyn Koshelenko informed about this program of the TV channel Dom.

It should be recalled that the Great privatization program, launched in 2020, provides for the sale of public facilities in private hands. Enterprises that are used inefficiently and with no revenue to the treasury are considered for sale at auctions.

“Despite the coronacrysis, our goal of privatizing State-owned enterprises, which are often highly inefficient and breeding grounds for corruption, remains unchanged. Moreover, in order to ensure a rapid recovery from the pandemic and increase the well-being of our citizens, we must improve the business climate and create favorable conditions to attract investments to Ukraine” said the president of Ukraine Volodymyr Zelenskyi.

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