On Saturday, the government of Ukraine, in the person of prime minister Denys Shmyhal, the state property fund, and the ministry of economy decided to resume extensive privatisation. Recall that the beginning of the Russian invasion halted many processes in the country, including the privatisation of enterprises. In December 2022, Kyiv returned to the process of small privatisation. In March, after the meeting, it was decided to restore the right to sell large state-owned enterprises entirely.
This step will help to clear Ukraine of failed companies, attract investment and minimize part of the state in the country's economy.
"We transfer most state enterprises to the management of the State Property Fund. After analysing their activities, they will either be privatised or get a new management level according to the Organisation for economic cooperation and development standards," the prime minister said on Facebook.
However, Kyiv reserves the right to control essential companies responsible for security and strategic importance. Other enterprises (audit, investment, consulting, etc.) which cost more than $6.7 million may be subject to extensive privatisation. This procedure helped replenish the government's coffers to up to $600 million a year in the last few years before the war.
