Large Scale Ukrainian Privatisation Begins
- New Europe Investor
- January 28, 2016
A total of 25 state owned Ukrainian companies are set to be privatised this year as part of large scale reforms in the country.
The Minister for Economic Development and Trade, Aivaras Abromavicius said a short list of 25 companies from the energy sector, chemical sector and elements of the port infrastructure are set to be sold off throughout the year.
The Ukrainian parliament must first adopt legislation necessary to facilitate the privatisation.
It is expected that the selling off of the state owned companies will raise as much as 30 billion hryvia (€1.11 billion) in 2016. This amount is far higher than the year’s budget expectations.
The country’s privatisation drive, carried out in return for its IMF bailout is vast. It includes more than 2,000 businesses of varying sizes, and Ukraine will be left with only 15-20 ‘strategic’ enterprises, such as a railways and major utilities when complete.
The government will have to calm concerns that whilst the sales will remove loss making companies from the country’s balance sheet, it does not create another generation of oligarchs.