Business news from Ukraine

Government of Ukraine transferred more than 800 enterprises to State Property Fund

5 October , 2022  

At a meeting on Tuesday, the Government of Ukraine decided to transfer more than 800 enterprises with assets worth UAH 45 billion to the State Property Fund, First Deputy Economy Minister Denis Kudin said.

“This is the largest transfer of enterprises in the term of this government. In fact, now only assets in the field of energy, infrastructure, defense industry, culture and standardization and metrology remain subordinate to the ministries,” he wrote on Facebook.

According to available information, in this list, in particular, “Artyomsol”, “Konyarstvo of Ukraine”, NSC “Olympic”, “Odessa Film Studio”, coal enterprises.

Kudin clarified that so far the Fund has not been transferred to enterprises in respect of which restructuring or transformation to another organizational form is underway: for example, from a state enterprise to a state institution or state organization, or companies in a state of liquidation, or perform service functions.

“The next step is for the State Property Fund. We expect that by mid-November the Fund will be able to actually start working as a management body for these and other enterprises, regarding which the decision to transfer was made earlier,” said the first deputy head of the Ministry of Economy, who was previously responsible for managing state assets in the Fund .

Kudin recalled that the goal of the reform is to reduce the size of the state in the economy and stimulate private entrepreneurial initiative. According to him, the Fund will make a decision on privatization of some enterprises, while others will be consolidated into asset management holdings and will bring dividends to the budget.

The State Property Fund (SPF) of Ukraine would like to become a single manager of all state property in the country, while it is currently distributed among 96 different state departments, Rustem Umerov, appointed this week as its head, said.

Speaking at the Rebuilding Ukraine forum organized by UkraineInvest on Thursday, he expressed the opinion that such centralization would improve the efficiency of state property management.

The new head of the SPF, Rustem Umerov, appointed by the Rada in early September, previously announced plans to create a Sovereign Fund, which would unite the main state enterprises, as well as the intention to make the SPF the sole manager of all state property in the country, while currently it is distributed between 96 different government departments.