Ukraine to Make New Privatisation Push

.

Ukraine’s Deputy Minister of Economic Development and Trade Maksym Nefyodov has warned potential investors in a number of state-owned enterprises that few are ‘gold mines’ and that potential investors should be prepared to for a long haul.

Talking to the UNIAN news agency, Mr Nefyodov said that of 900 enterprises slated for sale in the latest attempt to kick start Ukraine’s privatisation process (one of the country’s biggest failures, according to EBRD Managing Director for Eastern Europe and the Caucasus Francis Malige), few were in great shape.

“Of course, we have assets such as Turboatom, a profitable, growing enterprise which will be an interesting asset for strategic investors. But there are very few such examples. The main task of privatisation is not to get the maximum value, but to find a strategic investor who will develop the business, create jobs, pay taxes, increase exports, and so on,” Mr Nefyodov.

Privatisation of Ukrainian state-held assets has been a more stop than start process since independence from the Soviet Union in 1991. The state still owns more than 3500 enterprises, most of which date back to the Soviet-era. Most are unprofitable, and maintaining them is a strain on the country’s finances. According to different sources less than 3 per cent of state-owned enterprises have been sold since 1991, none of them of any great size. When Ukraine tried to sell the flagship Black Sea nitrogen fertiliser plant Odessa Portside late in 2016, no bids were received.

Nevertheless, Ukraine has now set ambitious targets for privatisation, and Mr Nefyodov is well aware of the how crucial the process is.

“Privatisation is important for a number of reasons,” he said. “First, there is an abnormally large number of SOEs in Ukraine. Central government authorities alone control almost 3,500 of them. These SOEs are washing away taxpayers’ money and hinder the development of healthy competition. Such inefficient use of resources leads to corruption. A vicious cycle is created, which, if not broken, it will continue to suck money from the state budget and discourage investment. The public sector still accounts for almost 16 per cent of the economy. This is abnormally high.”

How does he plan to do it? By being flexible.

“As a former investment banker, I can safely say that there is no guaranteed way to sell an enterprise. It should be a quality sale, the company should be effectively advertised, and the terms of sale changed if it does not work out.”

A new privatisation law will also help.

“Instead of seven privatisation laws, we will have just one, although there will still be a separate law that regulates the privatisation of state-owned banks,” Mr Nefyodov told UNIAN. “To replace the many groups into which state enterprises have been divided, there will now be only two — big and small. Small enterprises will be privatised via e-auctions and offered for sale without special preparation, to be sold on the principle of selling the assets of the Individual Deposits Guarantee Fund. Big enterprises (there are 50-60 of them) will be sold with the involvement of investment advisers. Another innovation is that you will be able to use English law for contracts so that the investor feels more secure.”

Ukraine had hoped that privatisation would raise 17 billion hryvnia (around 545 million euros), but has to date sold assets worth just 3.2 billion hryvnia (103 million euros), almost all in the energy sector.

RELATED ARTICLES

EU Membership and Transition into Market Economies Have Helped CEE Achieve Social Progress

Plovdiv — an emerging outsourcing destination

Growth Continues for State-Owned Azerbaijan Airlines

Azerbaijan Baku - September 16 2015: View of the Heydar Aliyev International Airport sign in Baku Azerbaijan. The airport is the home of Azerbaijan Airlines the national flag carrier.

Slovenia is the CEE region’s leader in VAT collection

The Azerbaijani Laundromat: Why It Matters

azerbaijani money laundering

Chris Lowney — What Jesuit Spirituality Can Teach Us About Global Leadership

IMF: Institutions Key to Sustainable Growth

IMF

HSBC Reports CEE Growth Surge in Q3

romania national bank

IMF Wants Banking Sector Reform in Western Balkans

croatia national bank

Ametek opened a new factory in Subotica

Belarus Steps Up Liberalisation of Business

belarus

Euroscepticism in Serbia: An Image Problem?

EY: Belarus’ IT Scene Is Thriving

High tech park minsk

Romanian Cabinet Reshuffled as New Splits Emerge in Ruling Party

BUCHAREST ROMANIA - MAY 25 2014: The Victoria Palace. Victoria Square.

The Reality in Romania Exposes False Perceptions Of The Country

Poland’s Business Constitution Must Be Finalised

Front of finance ministry in Warsaw Poland with a fountain framing the entrance. Could be used for images about Euro currency problems

Kraków: Officially Emerging Europe’s Most Elegant City

Krakow. Image of Krakow Market square, Poland during sunrise.

Is Prague the New Face of Overtourism?

prague tourists

Global Players Dash for Tempting CEE

dollar pound euro coin on euro background.

Lithuania Wants to Bring Home its Skilled Workers

VILNIUS - FEBRUARY 25: Many people choose books at the indoor book

CEE Boosted by Positive Tourism Trends Across the Region

cruise ship in Kotor Bay Montenegro. Aerial view panorama. Kotor bay Montenegro.

All for One, and One for All

GE

The Slovak Matchmaking Fair open for registration

Belarus’ Economy Is Slowly Recovering From Past Declines

After Economic Shocks Armenia Plans for Macroeconomic Stability

yerevan armenia minister of finance

Derek Chollet: There Is a Resurgence of Supporters of the Transatlantic Relationship

white house

Retail Rents Rise Across Emerging Europe

Na Prikope Prague

Ukraine’s Economic Recovery: Good, But Slow

ukraine money

Poland Stays Cool on Euro Adoption

Euro cash and Zloty on one photo.

Bulgaria and Romania Get EBRD SME Boost

Startup Diversity Teamwork Brainstorming Meeting Concept

Belarus-Turkey Investment Forum to increase investment and trade between the two countries

Czech Republic Raises Interest Rates

czech koruna

Estonia Leads Baltics in Cutting Sugar in Food and Drink

Measure, Strengthen, and Grow

dacia brand

Investigations Into the Corrupt Ukrainian Fuel and Energy Sectors

Ukrainian money hryvnia. The national currency. Corruption in Ukraine

Romanian Car Maker Dacia Sees Sales Boom

Sables d Olonne France - May 07 2017 : Dacia Tour 2017 is a commercial operation organized by the car builder in order to present its cars throughout France - Close-up on cars

Meghri Becomes Armenia’s Third FEZ

armenia emerging europe

Romanian Economy Grows Fast in 2017

Brasov cityscape panoramic and aerial view over medieval architecture of Brasov town, in Transylvania Romania

Lech Wałęsa: Hard Options Can Force Nations to Get Down to Work

Air Passenger Volumes Reach Record High in the Baltics

airbaltic

Bosnia and Herzegovina: Focussing on Stability and Business Climate

Sarajevo Bosnia and Herzegovina - August 23 2015. View of Miljacka River in Sarajevo city

Do Your Homework First and Starting Business in Poland is Easier

Lithuania Handed Top Marks for Business Services

Beautiful panorama of Vilnius Old Town taken from Gediminas hill; Lithuania

Beyond Borders: Immigration Within the EU

refugees immigrants

Still Potential for Growth in CEE as Economies Stabilise

Lviv Region in Double Logistics Boost

goods train logistics

Economy builds bridges in Mostar

e-Estonia: Believe the Hype

Bulgaria’s cooperation with Israel could boost the economy

More Brexit Fears As the UK Proves To Be A Needed Member

City of London view from Waterloo Bridge. This view includes: St. Paul`s Cathedral The Gherkin Tower 42 and Blackfriars Bridge.

Moldova Launches New e-Procurement System In Search For Positive Change

Photo team work process, holding contract hand, signs documents. Account managers young crew works with startup project.New idea presentation, analyze marketing reports.Blurred, film effect, horizontal.

Tech Giant Expands Romanian Operations

Georgian PM Reshapes and Reshuffles Cabinet

Giorgi Kvirikashvili

Young Georgians Make Their Mark at Emerging Europe-EBRD Event

maximilien lambertson at emergeing ebrd outlook on georgia

Romania’s Budget Deficit ‘Should Start Alarm Bells Ringing’

BUCHAREST ROMANIA - June 29 2017: Romanian Prime Minister Mihai Tudose during a swearing-in ceremony at Cotroceni palace in Bucharest capital of Romania June 29 2017.

Growth Increase Offers Glimmer of Hope for Moldova

chisinau

IMF Believes State-Owned Enterprises Must Be Reformed

Image of the banknotes of new Belarusian banknotes five rubles put into circulation July 1 2016

Albania is creating three free economic zones

Lviv Is the Pearl and the Soul of Ukraine

Ukraine Is Offering Europe Unique Combat and Technological Experience

Slovenia is CEE’s leader in innovation

Belarus is the most creative EEU country

Budget Chaos Hits Romanian Leu

Different Romanian Lei Banknotes on the table

GSA Names Ukraine as UK’s Offshoring Destination of the Year

map of ukraine emerging europe

EconMin: Bulgaria — Number One Outsourcing Destination And an Island of Stability in Europe

Bulgaria: Real Estate’s New Frontier?

High Real Estate Prices at Home Force Czech Investors Abroad

Construction of the Petrin lookout tower in Prague Czech Republic

PE and VC Investment In CEE Is At an Eight-Year High

venture capital

Albania’s Construction Sector Supports the Country’s Growth

SARANDA, ALBANIA - MAY 18: View of the city Saranda, most important tourist attraction of the Albanian Riviera on May 18, 2017 in Saranda, Albania.

Trans Adriatic Pipeline Will Fuel Albanian Growth

Xanthi. Greece - July 30 2017: aerial view of construction of gas pipeline Trans Adriatic Pipeline - TAP in north Greece. The pipeline starts from the Caspian sea and reaches the coast of southern Italy

Czechs Hold Emerging Europe’s Most Powerful Passport

Estcoin: Estonia’s Own Digital Currency?

1 euro coin money (EUR) currency of European Union Estonia over blue background

Putin Urges Belarus to End Oil Transit Through Lithuania

Athens Greece - May 27 2016: Russian President Vladimir Putin delivers

Effective Policies Have Strengthened the Georgian Economy

TBILISI GEORGIA Jul. 18 2017: Bridge of Peace is a bow-shaped pedestrian bridge a steel and glass construction over the Kura River in downtown Tbilisi capital of Georgia

Albania’s Economy Booms Despite Political Infighting

Panorama view to the city Tirana Albania

Polish Labour Market Deficits Are Impacting All

Construction site with crane and building. Construction site in western europe - in Poland.

Fitch And the World Bank: Economic Growth To Remain Solid Within CEE In 2016

The Polish Government’s Mid-Term Report: Must Do Better

Front of finance ministry in Warsaw Poland with a fountain framing the entrance. Could be used for images about Euro currency problems

Škoda too Strong for VW Group

MLADA BOLESLAV CZECH REPUBLIC - MAY 30: Skoda Octavia on conveyor line during Doors Open Day at Skoda Auto a.s. factory. Skoda auto celebrated 120 years since its founding on May 30 2015 in Mlada Boleslav.

Doing Business Across Eurasia Could Be Easier

Eurasia emerging europe schneider group

Kaczyński Defends PiS Record

High-Tech Park in Minsk is growing rapidly

New investors interested in Belarus’ Great Stone Industrial Park

Larisa Manastirli: Where is Bulgaria After Ten Years in the EU?

EU May Offer Georgia, Moldova and Ukraine Customs Union and Schengen Access

schengen

Macedonia — Stepping Out Of the Shadow Of the Balkans

Slovakia: Growth Continues But Problems Remain

Latvia Urged Not to Increase Expenditure As Economy Grows

Riga, Latvia - August, 2010: Panorama view from Riga cathedral on old town of Riga, Latvia

Georgia’s Growth Continues

Batumi, Adjara, Georgia - May 27, 2016: Batumi, Adjara, Georgia. Gogebashvili Street Road And Marine Station Or Maritime Station Building Batumi On Background

Baltic Bank Merger May Tempt Polish Heavyweight

DNB Bank Vilnius

Ukraine to Restart Privatisation to Realise Profits

Pricatisation electricity ukraine

Slovenia Sets Green Vehicle Deadline of 2030

ljubljana

Changes Are Making Ukrainian Banking More Aligned with International Standards

Serbia Drafts New Competition Law

serbia belgrade flag

Czech Election Result Could Delay Euro Adoption Until 2025

czech banknotes nominal value two and five thousand crowns on white background. 300 000 Kc is approximately 12 450 US dollars (USD) or 11 100 Euro (EUR)

Croatian Salaries Are Growing in Line With Other CEE Countries

Dubrovnik Croatia emerging europe

Estonia — Easy Doing Business Destination seminar in the UK

EU: Consumption Still Driving Growth

Lithuania Set to Streamline Competition Legislation

Industrial dock with cranes on the quay

Investing in Ukrainian Food and Agriculture

Azerbaijan, Georgia, Turkey Launch New ‘Silk Rail’ Link

Belarus Introduces New Business-Friendly Auditing Procedures

MINSK, BELARUS - AUGUST 15, 2016: Aerial view of the southwestern part of the Minsk with Palace of Sport and old and new other buildings. Minsk is the capital and largest city of Belarus.

Hungary Seen as Riskiest Country in CEE

risk

Georgia Leads Emerging Europe in Ease of Doing Business Report

Poland to Switch from Emerging to Developed Market by September 2018

warsaw stock exchange

CEE Must Improve Infrastructure and Logistics

Aerial view of Gliwice Sosnica motorway junction. There are international traffic in four directions

CEE Tech Growth Continues: Poland and the Czech Republic Lead the Way

technology

CEE Is Key to China’s Belt and Road Initiative

Shanghai skyline Panoramic view of shanghai skyline and huangpu river Shanghai China

Merkel: Albania is taking big steps forward

Emerging Europe Back on Track to Convergence

wiiw

Poland’s Flying Circus

airport poland

Warsaw Rising: The Polish Capital’s Skyline Gets Even Taller

varso

Emerging Europe Makes Some Progress on Closing Gender Gap

world economic forum gender gap report

Does the Sceptre of Separatism Haunt Emerging Europe?

Szekely Land Flag

Emerging Europe to Record Positive Growth Across the Board in 2018

coins growth

Košice Business Matchmaking Event Brings in Hungarians

kosice, slovakia

Bloomberg Croatia Business Day 2015

Hungary’s Solar Dreamer

hand sun and blue sky with copyspace showing freedom or solar power concept

Hungary Today: Potential and Challenge

Chain bridge on Danube river in Budapest city. Hungary. Urban landscape panorama with old buildings and domes of opera

Sunday Trading in Poland Under Renewed Threat

ICT Growth Continues to Boost Bosnian Economy

ict, it

Lithuania Gives Innovation a StartUp

MILAN ITALY - MAY 2: People visit Lithuania pavilion at Expo universal exposition on the theme of food on MAY 2 2015 in Milan.

More EU Help for Belarus SMEs

GRODNO BELARUS - DECEMBER 13 2013: Seamstress in textile factory sewing with a industrial sewing machine .

Montenegro Accelerates Legal Reform

montenegro law reform

Poland’s Q2 2017 Growth Is Stronger Than Expected

WARSAW, POLAND - MAY 07, 2016: Building Palace of Culture and Science among the modern buildings of the city

Ukraine’s Q2 Growth Climbs

kyiv ukraine emerging europe

Chinese Electric Car Maker Seeks Emerging Europe Base

zhi dou d2

Kosovo: A Population of Talented Young Entrepreneurs Waits at Europe’s Door

Digital Business Space Gives All Businesses an Office in Sarajevo

Sarajevo Bosnia and Herzegovina - August 24 2015. View from Vraca Memorial Park with building of Avaz Twist Tower

‘Traditional Values’: A Potent Weapon Against LGBT Rights

gay rights putin

Towards a resilient Europe, strategies for the future

A Risky Evaluation of Croatia’s Economy?

ZAGREB, CROATIA - JULY 17, 2017: Square Ban Josip Jelacic with tourists and trams on a summer day in Zagreb. City of Zagreb is the capital of Croatia.

Nadiya Savchenko: I Dream of a Great Ukraine

Panorama of the top part of the Andrew's Descent from Castle Hill in springtime in Kiev Ukraine.

CEE Emigrants Could Boost Their Countries’ Economies

Londoners walking through Millennium Bridge with St.Paul's Cathedral at the background after sunset - London, UK

Business Standards Are High in SEE But Vary Widely

Aerial view of The Cathedral of the Assumption in Varna

Latvian Deputy Prime Minister Highlights Riga’s Potential

riga

TV Still a Star for CME

Industrial Production Prices in New Increase

electricity

Estonia Proposes Bill of Rights and Responsibilities for Robots

Robotic hand accessing on laptop the virtual world of information. Concept of artificial intelligence and replacement of humans by machines.

Economy Minister: Internationalisation Is the Key To the Slovenian Economy

The Czech government attracts FDI and creates jobs

Chickens Blamed for Romanian Budget Deficit

Two white chickens or hens inside a chicken coop or hen house seen through chicken wire.

Automotive and Transport Companies Dominate the CEE Region

Car bodies on the production line inside automobile factory

Valga and Valka – Where Estonia and Latvia Work Together

Valga valka emerging europe

CEE-Benefits and Disadvantages of Joining the Eurozone

forint zloty euro

Continental Launch Largest Ever Lithuanian Greenfield Investment

kaunas lithuania

Poland Is Set To Become a Large Economic Zone

Aerial view over the building materials processing factory. View from above.

Poles Still Keen on German Jobs

Brandenburg Gate in Berlin in Germany. The Brandenburg Gate is a triumphal arch a city gate in the center of Berlin. It is one of the most known sites in Berlin.

Estonia Leading CEE Country in WEF Competitiveness Index

pharmaceutical factory woman worker operating production line at pharmacy industry manufacture factory

SEE Link — Sharing SEE Europe’s Hopes for a Brighter Investment Future

German Multivac invests €15 million near Sofia

World Bank’s Doing Business Report 2016 Resume For Emerging Europe

Ukraine’s Finance Ministry Wants Urgent Tax Reform

Bad Payers Still Causing Problems for Romanian Firms

Close up Romanian currency note, LEI or LEU, Romania

Baltic States to Launch Combined Capital Market

capital markets

Regional News Outlets: The Real Target of Poland’s New Media Law?

poland media

Mayor: Armenia And Its Capital Yerevan Offer Safe Investment And Tourism To a Growing World

CEE Nation Brands Still Behind Western Counterparts

TALLINN ESTONIA- JUNE 17: View of the modern high rise buildings on border with an old part of the city on June 17 2012 in Tallinn Estonia

Polish Shoppers in Hunt for Eggs

eggs in rack

Poland Fails to Spend Billions of Euros in EU Funds

euro banknotes

Globalisation Needs to Work, Not Only for the Few but for the Most and in Demonstrable Ways

Global Spread

Sarajevo Stock Exchange Connected to SEE Link

sarajevo stock exchange

Foreigners choose Minsk and Gomel as Belarus’ most attractive FDI destinations

China Agrees to Build High-Tech Business Park in Serbia

BELGRADE SERBIA - SEPTEMBER 29 2016: View on the city center and the junction of Rivers Sava and Danube in Belgrade Serbia.

One in Five Poles Unaware of Source of Funds for 500 Plus Programme

EBRD Finances Small Business Support And Foreign Trade Promotion In Belarus

Revenues Of Bulgarian IT Companies Have Sextupled In the Last Decade

21st century Manufacturing Arrives at Great Stone

Great stone

Emerging Europe Makes Great Strides in Improving Business Regulation for Entrepreneurs

Skopje Macedonia

Western Ukraine Could Be an Entry Point into the Country

Baltics Seek Lockstep With High Tech States

Euro money: Macro view of euro coin and bill. Suitable for financial, monetary, euro or European Union concepts and ideas

IMF Urges Croatia to Speed Up Reform

croatia

Jadranka Joksimović: Serbia Takes Its Candidacy of the EU Seriously

bigstock-Joint-Press-Conference-Of-Serb-155400338.jpg

Prospering Czechia Still Needs a Bigger Workforce

prague emerging europe

Go East

Budapest’s Property Boom Goes Nationwide

building

IMF Increases Growth Forecast With Emerging Europe Prominent

Dambovita river and center of Bucharest at sunset time Romania.

CEE Lags in Business Connectivity

ANIS romanian ICT

Non-Financial Reporting No Longer a Secondary Consideration in CEE

Visegrad Group Looks East

Despite Public Anxieties, Migration is Playing a Key Role in ECA Growth

Bratislava city aerial panoramic view. Bratislava is the capital of Slovakia.

UK Economic Growth Slows as Brexit Uncertainty Bites

flags of UK and EU combined over icons of London - Brexit concept

Serbia, Belarus and Ukraine Ranked Lowly by Wharton Business School

Kyiv Ukraine - April 172017: The postal square in Kiev on Podol the Dnipro river. view of the square from the river panorama

Why Was Zapad-2017 So Important?

russian tank belarus zapad

GE Inaugurates Its New Bucharest Software Centre

Asian Outsource Developer Team Sitting At Desk Working Laptop Computer Mobile Application Software Real Office

Romania Cuts Income Tax, Introduces Solidarity Tax

CLUJ NAPOKA ROMANIA - OCT 2 2016: People on the central street of Cluj Napoka - the unofficial capital of Transylvania.

World Bank: Brexit Hides Greater Challenges to the European Union and the CEE Region

Economic Confidence Rises Across Eurozone

EU Commissioner Launches Veiled Attack on Poland and Hungary

eu commission
  1. Privatisation first? Ukraine’s big problem is corruption not private ownership. So far the Maidan Revolutionaries have done NOTHING about corruption – except to fire Saarkaashvili. Changing corruption, according to President Porkoshenko, is due to start, again, next Spring … trust him.

Leave a Reply

Your email address will not be published. Required fields are marked *