Business news from Ukraine

STATE PROPERTY FUND ESTIMATES POTENTIAL REVENUES FROM SMALL-SCALE PRIVATIZATION AT UAH 1.5-1.7 BLN

The State Property Fund of Ukraine (SPF) estimates the potential amount of proceeds from small-scale privatization at UAH 1.5-1.7 billion, Acting Head of the SPF Vitaliy Trubarov has said. “Maksym Nefyodov Deputy Minister of Economic Development and Trade expects that we will receive UAH 3 billion from small privatization. According to our modest estimates, the amount may not be so optimistic, it will be UAH 1.5-1.7 billion,” he said on the air of Channel Five.
At the same time, he noted that there are fears of failure to implement the plan for large-scale privatization this year. “Is there a chance that we will not fulfill the planned task? Yes, unfortunately, there is such a chance, because we lost half a year due to the fact that privatization of some of the objects could not start on time, and some of the objects fell out of the list,” Trubarov said.
In particular, he noted that the list of large-scale privatization for 2018 does not contain a number of large agrarian objects. “For example, the Agrarian Fund or the State Food and Grain Corporation of Ukraine. They perform a certain role related to food security, which now does not allow putting these objects up for sale. At the request of the ministry of Agrarian Policy and Food, these objects have been removed from this list for the time being and transferred to 2019,” he said.

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STATE PROPERTY FUND TO HOLD TENDER TO SELECT ADVISOR FOR PRIVATIZATION OF ODESA PORT-SIDE PLANT

The State Property Fund of Ukraine (SPF) will hold a tender to select an advisor for privatization of public joint-stock company Odesa Port-Side Plant, acting Head of the SPF Vitaliy Trubarov has said. “The Odesa Port-Side Plant will be privatized under the new law with the attraction of an advisor. Now we are working to prepare for a tender to select an advisor, as soon as the Economic Development and Trade Ministry selects their candidate to be a member of the commission, we would switch to the creation of tasks for the advisor and tender conditions,” he wrote on his Facebook page.
Trubarov said that synchronously the fund jointly with international advisors is looking for ways to restructure debts of the company.
As reported, Public joint-stock company Ukrtransgaz has appealed to the National Police of Ukraine asking to interfere in the situation with rapidly growing debts of Odesa Port-Side Plant.
According to Ukrtransgaz, the amount of debt owed to Ukrtransgaz for the services of gas balancing for the needs of the Odesa Port-Side Plant, which was provided to the Ukrainian Energy Company, increased by another UAH 500 million only in April. In addition, the plant has its own debt to the company in the amount of UAH 473 million.

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LIST OF LARGE PRIVATIZATION IS PLANNED TO BE APPROVED ON APRIL 27

The government of Ukraine plans on April 27, 2018 approve a list of large facilities with assets worth over UAH 250 million for the privatization in 2018, acting Head of the State Property Fund (SPF) Vitaliy Trubarov has said. “At a meeting of the government to be devoted to the privatization scheduled for April 27 we will receive the finished list of large privatization and approve the requirements,” he said. Trubarov recalled that according to the new law on privatization that took effect on March 7, all facilities are divided into two groups: large and small. The fund makes decisions on the lists of small privatization. For this year the fund has approved a list of 660 small facilities.
The SPF head said that the sale of facilities in line with the new law will start after May holidays.
Trubarov also expressed opinion that in the coming five or seven years large Ukrainian companies like Ukrzaliznytsia or Ukrposhta would not be placed to the privatization lists.

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