The government has amended the regulations necessary for further privatization of the unified property complexes of state-owned enterprises Ichnianskyi Distillery (Chernihiv region) and Chervonenskyi Food Product Plant (Chervone village, Zhytomyr region).
“According to the decision taken at the Cabinet of Ministers meeting on December 12, the State Property Fund received grounds to stop the reorganization of these plants and the opportunity to privatize them,” the Ministry of Economy said in a statement on Wednesday.
The ministry reminded that the government resolution of October 28, 2010, approved the reorganization of these two plants by merging them with the state-owned Ukrspyrt. However, the reorganization processes have not been carried out, and both are in a state of legal entity termination.
It is specified that in January 2003, the Ichniansky Distillery received permission to start producing high-octane oxygen-containing gasoline additives. The plant also produced ethyl alcohol (including rectified alcohol, Extra alcohol, Lux alcohol, and technical alcohol), as well as isoamyl alcohol for the needs of the chemical industry and bard, and alcoholic beverages. In 2014, it was no longer in operation.
“According to the Ministry of Economy, Krasnenskyi Food Product Plant is capable of producing organic solvents, glass cleaning liquids based on alcohol production technology, as well as alcohol, alcoholic beverages, liqueurs, fruit drinks, liqueurs, and juices. The raw materials used are molasses (molasses), sugar beet processing waste, and grain.
The strategy for the privatization of state-owned enterprise (SOE) Ukrspyrt envisages the transfer of property of the SOE as a pool of fixed assets of industrial sites to the State Property Fund of Ukraine (SPF) before June 1, 2020.
According to the presentation of Ukrspyrt, the necessary conditions for privatization are the completion of the registration of property of state-owned distilleries.
Now out of 41 Ukrspyrt’s industrial sites, 18 have all the property registered, another 18 have partially registered property, and five have been seized.
The main advantage of this privatization option for Ukrspyrt is the ability to transfer facilities for privatization before June 1, 2020.
