Ukraine has over 3,000 state-owned enterprises. Unfortunately, their economic potential, which stems from their assets, is undermined by poor management. To solve this issue, the privatization framework was reworked aiming to attract new investors by electronic auctions and transparent procedure. As KyivPost informs.
Despite the coronavirus crisis, in 2020 privatization was successful with more than 1,900 objects auctioned for a total value of approx. $110 million. The landmark privatization project was the sale of the “Dnipro” hotel in the downtown of Kyiv, whose starting price increased tenfold – up to $40 million.
On 30 March the Parliament adopted a bill unblocking “large privatization” – the sale of assets whose value is equal to or exceeds $9 million. Plans for 2021 are grand – the State Property Fund of Ukraine (SPFU) expects to sell JSC United Mining and Chemical Company (one of the world’s largest titanium ore producers), JSC First Kyiv Machine-building Plant, and JSC President Hotel among many other state assets.
The State Property Fund (SPFU) of Ukraine has determined the starting price for the privatization of JSC “United Mining and Chemical Company” (OGHK) in the amount of UAH 3.7 billion.
And to top it off, the SPFU has prepared a bill introducing various amendments to privatization laws, including application of English law to the sale and purchase agreements of large privatization objects.