Photo from UNIAN
A total of 25 state-owned entities are planned to be sold as part of a large-scale privatization in Ukraine that will be launched this year, Ukrainian Minister of Economic Development and Trade Aivaras Abromavicius told a TV channel.
"We have shortlisted about 25 companies from the energy sector, chemical industry, and port infrastructure, which are of great interest to strategic foreign investors," Abromavicius said.
The Ukrainian minister notes that the large-scale privatization will be launched as soon as the Ukrainian parliament has adopted a necessary legislative package, removing some provisions that have signs of corruption.
"Last year, there was a real risk that if we hurried to conduct the privatization, it would not have been done in a way we would like it to be. And that is why we decided to set up a team that would help. What is needed? The requirement for offering 5-10% [of shares of state assets for price determination] on a stock exchange has to be changed, and I hope that the Verkhovna Rada will adopt these changes in the next weeks, and greenlight the large-scale privatization. The privatization process will top our ministry's agenda," Abromavicius said.
The minister noted that the classification of state-owned entities to be privatized is performed according to their size and degree of investors' interest.
"Small businesses [with a turnover of up to $1 million – UNIAN] should be sold at electronic auctions as quickly and transparently as possible, transferring them to small and medium businesses, for private undertaking. Other entities are divided into two categories: large-sized entities being of interest to investors and large-sized entities which investors are not interested in," Abromavicius said.
The minister recalled that Odesa Portside Chemical Plant (OPP) is the first one on the privatization list.
"The OPP is to be sold first, then goes Centrenergo. We should sell Ukrspyrt, machine building enterprises, the State Food and Grain Corporation of Ukraine. Regarding the OPP, we have already identified eleven potential investors who have shown interest. And we've also hired an adviser," the minister added.
Earlier, Chairman of Ukraine's State Property Fund Ihor Bilous announced that a successful privatization would generate up UAH 30 billion worth of revenue to the Ukrainian budget. At the same time, the 2016 budget projects proceeds from privatization at UAH 17 billion.