The State Property Fund of Ukraine (SPF) has approved a list containing almost 660 small-scale businesses that are going on sale in 2018.
Among others, the list includes the “Avtonavantazhuvach” (“Forklift Trucks”) plant in Lviv, the Novyi Rozdil mine and the “Sirka” (“Sulphur”) chemical enterprise, the Stebnitske mine and the “Polymineral” chemical enterprise, the Industrial Glass Company and the “Orion” Radio Plant in Ternopil. The Head of the State Property Fund announced this on Facebook on 28 March, UNIAN reports.
A total of five lists have been approved in accordance with the status of the enterprises and the newly introduced law “On privatization of state and municipal property”, which became effective on 27 March 2018. The Parliament of Ukraine passed the bill on privatization of state property on 18 January 2018, whereas the President of Ukraine Petro Poroshenko signed it into law in early March.
The main goal of the bill is to facilitate the privatization process by simplifying the classification of privatization objects, shortening the terms of the sale, the possibility of issuing a bank guarantee, and unifying the ways of selling state-owned property. Furthermore, international advisers will be involved in large-scale privatization, while small-scale privatization will be carried out via electronic trading.
Small-scale privatization refers to real estate objects and small businesses, while the group of large privatization objects includes facilities whose assets exceed UAH 250 million ($9.4 million). Additionally, the terms of preparation for the sale of objects were reduced from the current 9-12 months to four-five months, whereas the deadlines for submitting applications by potential investors were extended from 20-45 days to 20-180 days. The state budget for 2018 provides for UAH 21.3 billion ($802.6 million) in privatization proceeds. Altogether, the Ukrainian government intends to sell over 900 state-owned corporations.