At the Thursday session, Cabinet of Ministers of Ukraine approved the list of large privatization objects for 2018, including 26 state-owned companies, as reported by Interfax-Ukraine.
Prime Minister Vladimir Groisman noted at the session: “We sell for the purpose of attracting investments and facilitating effective operation of enterprises. We should engage qualified counselors in privatization of large enterprises. […] Such decision will eliminate shadow privatization in Ukraine”.
Vitaliy Trubarov, acting Head of the State Property Fund, stated that the Fund operated 18 entities, including ‘Ternopiloblenergo’ (50.999%), ‘Zaporizhiaoblenergo’ (60.2475%), ‘Kharkivoblenergo’ (65.001%), ‘Mykolaivoblenergo’ (70%) and ‘Khmelnytskoblenergo’ (70.0089%), Kherson (99.8328%), Dneprovski (99.9277%), Krivyi Rjg (99.9864%) and Severodonetsk Heat Power Plants (the latter is still a state-owned enterprise), ‘Azovmash’ (50%), ‘Turboatom’ (75.2241%), Zaporizhia Titanium & Magnesium Plant (51%), ‘Oriana’ (99.9988%), Aluminum Foil Plant (state-owned enterprise), ‘President Hotel’ (100%), ‘Centerenergo’ (78.289%), Odessa Port Plant (99.5667%) and ‘Sumykhimprom’ (99.9952%).
Trudabov mentioned that Ministry of Economic Development and Trade operated the United Mining and Chemical Company (100%), ‘Electrotyazhmash’ and Dnipro Electric Locomotive Building Plant (the latter is still a state-owned enterprise), while Ministry of Agrarian Policy and Food operated Agrarian Fund and State Food and Grain Corporation of Ukraine (100% each). Also Krasnolimanskaya Coal Company (state-owned enterprise) was operated by Ministry of Energy and Coal Industry, ‘Ukragroleasing’ – by Cabinet of Ministers (100%) and ‘Indar’ by Ministry of Health (70.7016%).
Head of State Property Fund added also that Government had approved all the necessary regulatory basis for implementing the new Law of Ukraine ‘On Privatization of State-Owned and Municipal Property”.
Stepan Kubiv, First Vice Prime Minister, clarified that Government had approved the general list of objects to be privatized in 2018-2020. He stated in Facebook: “It includes over 700 entities. Both lists will be available for study after short update by means of concerned bodies”.
Previously, State Property Fund approved the list of small privatization objects to be sold in 2018. In general, nearly 600 entities are to be sold at the tenders in the framework of e-auctions.
In March 2018, the new Law of Ukraine ‘On privatization’ entered into force distinguishing the two groups: large and small privatization objects. Large privatization objects include integral property complexes of state-owned and municipal enterprises, JSCs’ stocks of shares (over 50% of state-owned shares) as well as assets the cost of which exceeds 250 million UAH (according to financial reports for the last year). The remaining objects (small privatization objects) shall be sold by means of e-auctions.
State Budget for 2017 provided 17.1Bn UAH of proceeds from privatization but received 3.4Bn UAH only. The principal amount (3.05Bn UAH) was gained from selling in August blocking stocks of shares owned by power companies, purchased by Rinat Akhmetov’s SCM Group, owner of the companies’ control stakes. State Budget for 2018 envisages 21.3Bn UAH of proceeds from privatization.
In 2017 Şevki Acuner, Head of the EBRD Representation Office in Ukraine, stated that privatization renewal is a task of priority for 2018.
Source: https://ports.com.ua/news/kabmin-utverdil-privatizatsiyu-opz-i-gpzku-v-2018-godu