Nearly 900 state-owned enterprises to be privatized in Ukraine
Almost 900 state companies will be privatized in Ukraine before the end of 2020, including large banks, three film studios, Artemsil, and AeroSvit. The list was published by the Ukrainian Ministry of Economic Development and Trade.
“In 2017-2020, 893 out of 3,444 enterprises will be privatized,” according to the agency’s press release.
Among the largest assets to be privatized are the State Food and Grain Corporation of Ukraine PJSC, Oschadbank JSC, Privatbank PJSC, the State Export-Import Bank of Ukraine PJSC, the companies of Centrenergo PJSC, the Agrarian Fund PJSC, Ukrgazbank PJSC, and Turboatom SOE.
Companies such as Medicines of Ukraine SJSC, Electrotyazhmash SE Plant, Electronmash PJSC, a number of mines and commercial seaports, salt plants (Genichesky Solezavod and Artemsil State Enterprises), and experimental, design, and research institutes in different regions of the country are planned to be privatized over the next three years.
The National Circus of Ukraine as well as circuses in Kharkiv, Dnipropetrovsk, Zaporizhia, Odesa, and Lviv are being prepared for sale as well.
The National Cinema Studio for feature films named after Oleksandr Dovzhenko, the Ukrainian Studio for Chronicle Documentary Films SE, and the Ukrainian Film Studio for Animated Films SE, are also scheduled to be privatized.
Ukrbud Ukrainian State Construction Corporation, Aerosvit Airlines PSC, and a number of power supplying regional companies including Centerenergo JSC and others, were also included on the list.
In addition, 359 enterprises are expected to be leased. In particular, the largest airport in Ukraine, Boryspil International Airport, as well as Lviv Airport, and a number of enterprises controlled by the State Forest Resources Agency of Ukraine as well as regional road services.
At the same time, 378 companies will remain under state ownership, including Naftogaz of Ukraine National Joint-Stock Company, the State Administration of the Railways Ukrzaliznytsya, Energoatom SE, Energorynok SE, Chornobyl Nuclear Power Plant, and Ukrhydroenergo SE.
According to the Ministry of Economic Development of Ukraine, another 1,255 enterprises are planned to be liquidated. Of the list of almost 3,500 state-owned enterprises, 364 are located in the separatist-held areas of the Donbas.
In recent years, the process of transitioning has not been going smoothly in Ukraine. In particular, last year it was planned that 17.1 billion UAH (about $ 660 million) would be received from privatization to replenish the budget. However, the sale of only 139 state companies and 406 utility services brought in only 189 million UAH ($ 7.3 million) to the treasury, which equals only 11% of the planned amount.
According to the forecasts for the current year, the authorities expect to receive 17.1 billion UAH ($660 million USD). The Ukrainian government has had high expectation for the privatization of the Odessa Port Plant, a major producer of nitrogen fertilizers, ammonia, and carbamide. However, it has not been privatized yet.