The corporatization of the state-owned enterprise “Forests of Ukraine,” provided for in the draft government action program published on Monday, involves transforming the state-owned enterprise into a joint-stock company, with 100% of the shares belonging to the state, Yulia Pliska, director of the GR and corporatization department of the state-owned enterprise, told Interfax-Ukraine.
According to her, the State Forestry Agency of Ukraine (SFAU) has developed a special bill for the corporatization of the state-owned enterprise “Forests of Ukraine,” which is currently being reviewed by the relevant ministry. Virtually all of Ukraine’s largest state-owned companies have been corporatized under a special law. If the corporatization of State Enterprise “Forests of Ukraine” takes place without a special bill, it will be necessary to legislate certain aspects of the process that will regulate the specifics of the enterprise’s transformation into a joint-stock company.
“The advantages of corporatization are a management model that is understandable to international investors, which is a prerequisite for attracting investment. An independent assessment of assets will open up the possibility of attracting funds from international financial organizations: the World Bank and the European Bank for Reconstruction and Development (EBRD). Unlike a unitary enterprise, a joint-stock company has greater flexibility in implementing investment projects. In addition, a joint-stock company has the right to direct funds from the sale of illiquid assets to the development of the company,” said Pliska.
The corporatization of Lisy Ukrainy is expected to accelerate the introduction of new modern technologies, upgrade the material and technical base, and thus increase production efficiency. However, the state will remain the owner of forest lands, which, as before, will not be subject to privatization.
As reported, the Cabinet of Ministers, in its draft Action Program published on Monday, named the adoption of new legislation on the timber market and the corporatization of the state-owned enterprise Lisy Ukrainy as one of its priorities.
