Ukraine's 100 largest state companies post almost UAH 10 bln in loss in Q1

The state-owned companies' debts in the period under review expanded by 30.5%, to UAH 95.5 billion, the ministry said in a report available on its website.

Despite this, the book value of state-owned assets in the first quarter grew by 3.5%, to UAH 435.7 billion.

The ministry's press service reported later that the loss of the state companies that earn 80% of revenue and account for 90% of assets in the public sector, was caused by unfavorable economic conditions, hostilities in the country's east, the weakening of the national currency, and the fulfillment of non-commercial, but important state-authorized functions.

"The situation in the sector of state-owned companies remains tense. State enterprises continue sustaining considerable losses. We see the examples when political interests become obstacles to change of former heads, impede the pace of reform, letting inefficiency and corruption last longer. Politicians and senior officials should be removed from management of state-owned companies with the simultaneous introduction of modern mechanisms of corporate management," the ministry's press service quoted Economic Development and Trade Minister Aivaras Abromavicius as saying.

The ministry said that the next step in the reform of state companies would be the introduction of higher standards of transparency and the creation of a modern system of corporate management of state assets in keeping with European standards and recommendations of the Organisation for Economic Co-operation and Development.

"Respective draft law No. 3062 is now in parliament, and we hope that lawmakers will support it," Deputy Economic Development and Trade Minister Adomas Audickas said in turn.