A new wave of privatization will take place in Ukraine

By 2020, about a thousand state-owned enterprises will be privatized in Ukraine, informs “Investor”.

On Friday, March 2nd, the President of Ukraine Petro Poroshenko signed a law on privatization, according to which thousands of state-owned enterprises will be put up for sale. Anyone except Russians can take part.  

This year, it is planned to privatize 400 objects of so-called “small privatization”, such as children’s camps, cinemas, shops, and ships. In addition, 20 large enterprises will be put up for sale, among them the notorious Odessa port plant There were attempts to privatize it in 2008-2009, but the process was stopped due to a number of violations. The plant has repeatedly become an object oligarchic clans fight for. Nowadays, an oligarch-fugitive Dmytro Firtash is rumored to be interested in it.

“Only strategically important enterprises should be retained in state ownership,”

– said the President Poroshenko.

Small privatization objects will be sold at a public auction. It will expand a circle of potential buyers and increase a transparency of processes.

The Ukrainian government intends to save up to $ 22 billion in the privatization process. There were no significant revenues from privatization in Ukraine since 2005.

Despite statements by government officials and the President, experts doubt that an idea to prevent Russian companies from participating can be implemented. After all, buyers of property in Ukraine can be Russian companies, which register through third countries offshore.

Keeping in mind all the previous waves of privatization, one should expect, in addition to economic, a significant political bargaining. There are plenty of those who want to use the issue to attain a political capital.

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