Minister Abromavicius predicts first out of state enterprises subject to privatization will be sold late this year / Photo from UNIAN
The first out of the state-owned enterprises subject to new privatization are to be sold as early as late this year, Reuters reported quoting Ukrainian Minister of Economic Development and Trade Aivaras Abromavicius, according to German news broadcaster Deutsche Welle.
The list of 350 companies to be put up for sale will be topped by fertilizer producer Odesa Port-Side Chemical Plant and power generation company Centrenergo, according to the minister. He projects $500 million can be earned from the sale of Odesa Port-Side Chemical Plant alone. Hundreds of millions of dollars can be attracted by selling Centrenergo, with both local and foreign investors showing interest in the company, Abromavicius added.
For example, the French company Gaz de France is interested in acquiring Centrenergo. "It is an asset that in a perfect situation would be worth considerably more than it would be worth right now," the minister told Reuters.
According to Abromavicius, a large number of firms on the list for sale are loss-making enterprises and have negative equity values [the value of assets after the payment of liabilities], including select coal mines.
"So you will have, rather, a debate here whether we should give away these companies for one hryvnia? There will be very tough decisions," he added.
Abromavicius also said that Ukraine's government was trying to raise funds to shore up a near-bankrupt economy reliant on international aid, the agency reported.