Proceeds from Ukrspyrt sale could reach almost $200 mln – Deputy chief of President's Office

Proceeds from the privatization of Ukraine's state-owned distillery, Ukrspyrt, may amount to about UAH 5 billion (USD200 million), that's according to Yulia Kovaliv, Deputy Head of the President's Office.

At the same time, Kovaliv told a briefing in Kyiv Monday, without liberalization of alcohol production, it would only be possible to sell the enterprise only "at the price of scrap metal."

Therefore, it is expected that before year-end, the Verkhovna Rada will adopt a bill submitted by the president on the demonopolization of the spirits industry.

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"According to our estimates, the privatization of Ukrspyrt will bring the government at least UAH 5 billion. It is possible only in a demonopolized market. Otherwise, all those property complexes and buildings will be sold like scrap metal. If alcohol can't be produced there, they become several times cheaper," she said.

According to Kovaliv, losses from alcohol turnover in the "gray" and "black" markets amounts to some UAH 4 billion (almost $160 million).

At the same time, about 80% of alcohol production in the country remains in the shade.