In 2014, thirty largest state-owned companies transferred UAH 1.2 billion in dividends to the budget / Photo from hron.com.ua
Thirty largest Ukrainian state-owned companies' losses in 2014 totaled about UAH 100 billion, while the amount of dividends they transferred to the national budget was a mere UAH 1.2 billion, according to Ukraine's Economic Development and Trade Ministry.
"In 2014, thirty largest state-owned companies transferred UAH 1.2 billion in dividends to the budget. At the same time, they got UAH 13 billion in subsidies and tax benefits from the national budget, while posting UAH 100 billion in loss," the ministry reported.
Thus, the ministry's experts claim, the privatization of state-owned companies will be one of the most effective ways to reduce losses and spending on subsidies and benefits, simultaneously drawing more direct investment. It will also help eliminate corruption schemes and create equal conditions for all market operators.
As UNIAN reported earlier, the State Property Fund, the main agency in Ukraine in charge of the privatization of state-owned property, planned to sell stakes in a number of companies in July-August 2015. Among them were a 5% stake in Odesa port-side chemical plant, and a 25% stake in energy companies DTEK Dniprooblenergo, DTEK Dniproenergo, DTEK Zakhidenergo, and Kyivenergo each.
In September, put up for sale could be a 70% stake in Mykolaivoblenergo, 70% in Khmelnytskoblenergo, 50.9% of shares of Ternopiloblenergo, and 99.9% of shares of Dniprodzerzhynsk heating and power plant. In October, the SPF is to call a tender to sell 65% of shares of Kharkivoblenergo. In November it is to sell 94.9% of shares of Odesa heating and power plant, 94.8% of shares of Kherson heating and power plant, and 94.6% shares of Odesa port-side chemical plant. The sale of 55.2% of shares of Zaporizhiaoblenergo is scheduled for December.
In addition, the SPF plans to sell a 50% stake in PJSC Ukrnaftoprodukt in September and a 25% stake in Dniprovsky machine building plant in October. The sale of a 95% stake in Dniprometrobud and a 50% stake in Orion machine-building production association is scheduled for November, and 94.9% of shares of Sumykhimprom could be put up for sale in December 2015.
According to the government, the major goal of the large-scale privatization is to raise mainly European and U.S. investment. The government, in particular, plans to conduct a number of business forums to promote Ukraine's investment opportunities. The first of them, the U.S.-Ukraine Business Forum, took place in Washington, DC; preparations for another forum in Paris this autumn are under way.