Rada unblocks “big privatization”

The sale of large state-owned enterprises could bring some UAH 12 billion (US$430 million) to the state budget.Photo from UNIAN, Oleksandr KuzminPhoto from UNIAN, Oleksandr Kuzmin

The Verkhovna Rada, Ukraine’s parliament, on Wednesday passed a bill effectively lifting all holds off large-scale privatization.

Earlier, the Ministry of for Development of Economy, Trade and Agriculture noted that the move would allow launching preparatory measures (such as holding auctions) before the actual sale of major SOEs, according to an UNIAN correspondent.

Also, the Ministry believes, this would bring as much as UAH 12 billion (US$430 million) to the stage budget, well as attract significant investment.

Big privatization: Background

After quarantine restrictions were imposed in March 2020 to counter the spread of coronavirus, all preparations for the sale of major privatization objects were suspended. Previously, five to six such auctions had been scheduled to be held in 2020, but none ultimately took place.

In January 2020, the State Property Fund published a list of large-scale privatization objects set to be sold in 2020, which included 11 energy companies, as well as the United Mining and Chemical Company, Azovmash, Electrotiazhmash, Sumykhimprom, Odesa Portside Chemical plant, Oriana, President-Hotel , Indar, and Ukragroleasing.

On October 29, 2020, the Cabinet canceled the move to put part of state-owned enterprises for sale.

In late 2020, the Cabinet appealed to the Verkhovna Rada to unblock the privatization process.

The 2021state budget has laid down UAH 12 billion in privatization revenues, with the lion’s share of proceeds expected from the so-called “big privatization”.

Read more on UNIAN: https://www.unian.info/economics/soe-sale-in-ukraine-rada-unblocks-big-privatization-11371444.html

(C)UNIAN 2021

2 comments

  • Big privatization is good but you have to be careful who you’re selling to and make sure there will be a legit tax base.

    Liked by 5 people

  • onlyfactsplease

    “The sale of large state-owned enterprises could bring some UAH 12 billion (US$430 million) to the state budget.”
    This is not exactly a mind-boggling sum. Far from it. The country must weigh carefully the benefits and drawbacks of such a measure and, as Red pointed out, make sure that proper taxes will be paid.

    Liked by 2 people

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.