Privatization in action: How Ukraine’s budget was replenished from the sale of state property

Since the resumption of privatization a year ago, the State Property Fund of Ukraine (SPFU) has absorbed 3.98 billion hryvnia into the budget. The press service of the State Property Fund reported this on September 20.

It was noted that the average increase in the value of assets in auctions tripled last year. On average, 4.5 participants competed for an asset.

“This year, for the first time, the State Property Fund sold a peat enterprise – Rivnetorf – for 205 million hryvnias and a port – Ust-Dunays – for 201 million hryvnias. The sale of distilleries is also nearing completion. Sale of sanctioned assets. “Large-scale privatizations are ahead of us,” the statement said. . “This will allow us to obtain more funding to support the Defense Forces and attract international investment.”

Important

Let’s remember, in August 2022, Prime Minister Denis Shmyhal announced that mass privatization, which was suspended due to Russia’s all-out invasion of Ukraine, would begin on September 1. At the same time, the Council of Ministers slightly changed the process itself:

• a repeated electronic auction was launched using the method of stepwise reduction of the starting price and further submission of bids;
• the period between auctions has been reduced from 20-35 calendar days to 10-15 calendar days;
• The protocol on the results of the electronic auction must be signed using qualified electronic signatures;
• The winner of the electronic auction must pay the price of the purchased privatization object within 20 business days from the date of creation of the protocol on the auction results;
• The signing of the purchase and sale agreement regarding the privatization issue must be made within 25 business days from the day following the day the protocol was created;
• The publication of the instruction on the completion of privatization by the privatization authority in the electronic commerce system must occur within ten calendar days from the date of publication.

Let’s remember that privatization can help revive the Ukrainian economy, according to Bogdan Prokhorov, economist at the Center for Economic Strategy. We also note that in July 2022 the Verkhovna Rada banned the privatization of defense enterprises. Thus, enterprises for the manufacture and repair of all types of weapons in service with the Armed Forces of Ukraine were added to the objects not subject to privatization.