Business news from Ukraine

KYIV’S BUSINESS COURT UNLOCKS PREPARATIONS FOR PRIVATIZATION OF CENTRENERGO

Kyiv’s business court has annulled a ban the State Property Fund of Ukraine (SPF) from preparing for the privatization of PJSC Centrenergo, passing a ruling under a petition of the SPF on February 6, 2020.
The fund said on its website that at the end of January, the fund started the procedure of selecting investment advisors for the privatization of Centrenergo and is attracting an audit company with an impeccable reputation to conduct audit of the enterprise for 2019.
“In February, procedures to prepare a number of other large facilities for the privatization will be launched,” the SPF said.
As reported, Vitaliy Kropachev’s Ukrdoninvest LLC (Kyiv) repeatedly secured a lawsuit against the State Property Fund in the case of the privatization of PJSC Centrenergo by banning the fund from taking any actions to implement it.
Prosecutor’s office in Kyiv opened criminal proceedings on making the deliberately illegal decision to ban the privatization of PJSC Centrenergo by a judge of the business court of Kyiv.

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CABINET OF MINISTERS TRANSFERS OVER 530 STATE ENTERPRISES FOR PRIVATIZATION

The Cabinet of Ministers has transferred 530 state-owned enterprises for privatization, Prime Minister Oleksiy Honcharuk has stated. “The government transferred 530 state enterprises for privatization. In almost four months, more state objects were transferred for privatization than in all 28 years of independence,” Honcharuk wrote on Telegram.
The total book value of the assets agreed for sale exceeded UAH 12 billion.

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CENTRENERGO POWER GENERATING COMPANY IN TOP PRIORITY IN TERMS OF PRIVATIZATION – UKRAINIAN PM

PJSC Centrenergo power generating company is in the top priority of the Cabinet of Ministers of Ukraine regarding “large-scale” privatization, Prime Minister Oleksiy Honcharuk has said. “Centrenergo is in the top priority for privatization. And I want this company to be privatized by an external, real player. And the government will do everything for some kind of strong player to come here,” he said during the Kyiv International Economic Forum on Saturday.
He emphasized that the State Property Fund (SPF) is currently preparing the company for privatization.
“There is a manager there [in the State Property Fund] who does not depend on any oligarch,” Honcharuk emphasized.
Earlier, SPF Head Dmytro Sennychenko predicted the sale of Centrenergo in 2021.

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UKRSPYRT’S PRIVATIZATION COULD BRING UAH 5 BLN

The Office of the President of Ukraine hopes that the Ukrainian parliament will consider a bill on demonopolization of the spirit sector in Ukraine next week and that the preparations of state-owned enterprise Ukrspyrt will start, Deputy Head of the Office of the President Yulia Kovaliv has said.
“According to our estimates, the privatization of Ukrspyrt will bring us at least UAH 5 billion,” she said at a press briefing in Kyiv on Monday.
Kovaliv recalled that last week, the president introduced a bill on the demonopolization of alcohol production in the country to the Verkhovna Rada.
“Now alcohol is produced by the state-owned enterprise Ukrspyrt, while in another law we stipulate that all licenses for the production of alcohol can be granted only to state-owned enterprises. Actually, in conditions of non-liberalized production of alcohol in Ukraine, Ukrspyrt can only be sold at the price of scrap metal. We hope that next week this law on the demonopolization of the alcohol industry will be adopted and, together with this, preparations will be made for the privatization of Ukrspyrt,” Kovaliv said.
State-owned enterprise Ukrspyrt is a major producer of alcohol and alcohol-containing products in Ukraine. Until now, it was under the control of the Ministry of Agricultural Policy and Food.
The total production capacity of the SOE is more than 36 million decaliters per year.
Its work is provided by 41 production sites.

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PRIVATIZATION OF UKRAINIAN SPIRIT ENTERPRISES COULD BE ALLOWED IN A YEAR

A bill on demonopolilzation of the spirit sector could be passed by the end of this year, according to newly appointed advisor to the Minister of Economic Development, Trade and Agriculture of Ukraine on a voluntary basis Serhiy Bleskun. “A project to demonopolize the alcohol industry starts on Friday during the roundtable. A law on demonopolization of the alcohol industry may be adopted by the end of the year. The bill has already been developed,” he said at a briefing in the Cabinet of Ministers on Wednesday.
According to Bleskun, the state receives UAH 4.6 billion annually from the alcohol industry.
“We ask buyers of alcohol how much time it will take to build a distillery. They say: one and a half or two years. If they are allowed today, then after one and a half or two years they will have their own alcohol to make private distilleries operate,” he said.
State-owned enterprise Ukrspyrt is a major producer of alcohol and alcohol-containing products in Ukraine. Until now, it was subordinate to the Ministry of Agricultural Policy and Food.
The total production capacity of the SOE is more than 36 million decalitres per year. It has 41 production sites.

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UAH 1 BLN PROPERTY SOLD WITHIN SMALL PRIVATIZATION IN UKRAINE

State property worth UAH 1 billion was sold through the ProZorro electronic trading system in the framework of small-scale privatization in Ukraine, according to the ProZorro page on Facebook. According to the report, since the launch of small privatization, 813 successful auctions have been held through the electronic system, which brought the State Property Fund of Ukraine more than UAH 476 million, and municipalities some UAH 562 million.
“The objects of small privatization are in a high demand – an average of 2.7 participants compete for each lot. And the average increase in the starting sale price is 61.24%,” the report says.
“We beat a good figure in small privatization – UAH 1 billion for taxpayers in Ukraine. The practical result of the work of ProZorro.Sale. If after Maidan we did just that, I would have already considered that it was not for nothing that I came to work in government agencies,” First Deputy Economic Development and Trade Minister of Ukraine Maksym Nefyodov said on Facebook.