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Big Privatization in Ukraine: 25 Largest Enterprises to Be Sent to Hammer

Monday, 25 January 2016 17:28

 Approximately 25 state enterprises, in which foreign strategic investors showed interest, should become the targets of the big privatization in Ukraine, which should start this year, UNIAN reports.

This was said by Minister of Economic Development and Trade of Ukraine Aivaras Abromavicius in the interview to one of TV channels.

“Approximately 25 enterprises have been designated – energy sector, chemical industry, port infrastructure, in which foreign investors are really interested”, said Abromavicius.

Meanwhile, he noted that the start of the big privatization should be given by the Verkhovna Rada, adopting the necessary package of laws, which allow cancelling some regulations, which have elements of corruption.

“The previous year there was a real risk that if we hurry with privatization, it will not be in style, in which we wanted to see it. That’s why we decided to create a group of people, who could help. What do we need? The requirement to throw 5-10% at the exchange should be amended (shares of state assets for price determination) and I hope that the Verkhovna Rada will adopt these amendments. And then there will a green light for big privatization. The process of privatization will be essential for our ministry,” – noted Abromavicis.

He also noted that for the current year state enterprises are divided as per size and level of interest of investors.

“Small enterprises (with turnover up to $1 mln -UNIAN) need to be sold in the electronic format as soon as possible and transparently, to give it to small and medium business, to private initiative. And the rest of companies are divided into two parts – large enterprises, in which investors are interested, large enterprises, in which there is not any interest”, said the Minister.

In the meantime he reminded that the Odessa Portside Plant is the first in the list of privatization.

“OPP should be sold first, then “Centrenergo”, “Ukrspirt”, machinery manufacturing enterprises. 11 potential investors, who showed interest, have already been determined on Odessa portside, plus there is an advisor”, - added the Minister.

Previously the Chairman of State Property Fund of Ukraine Ihor Belous noted that in case of successful privatization Ukraine can gain UAH 30 bln to the budget. At the same time the gains from privatization amounting to UAH 17 bln have been included into budget 2016.  

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