KYIV, November 16 – Ukraine will sell its national telecoms monopoly Ukrtelekom at a privatization tender in November or December next year to raise at least $600 million, a spokeswoman for the prime minister said on Thursday.
“The government approved an order to agree with the State Property Fund’s proposal to privatize Ukrtelekom in November-December 2001,” Natalya Zarudna told reporters.
“We expect to raise at least $600 million from the sale and hope the amount will be higher,” Zarudna said.
Ukrtelekom tops the list of major state assets, which foreign lenders want to be privatized as a proof of Ukraine’s commitment to reforms. Its sale is also seen as the government’s best hope of achieving its ambitious privatisation targets next year.
The government expects to raise Hr 5.9 billion ($1 billion) from privatization next year.
Parliament approved a law allowing Ukretelekom privatization in June.
Under the law, Ukraine will sell at least 25 percent to an industry investor at an auction open to domestic and foreign investors. More shares can be sold, but the state plans to keep a 50 percent plus one stake in the company.
First Deputy Prime Minister Yuri Yekhanurov said on Wednesday the government planned to sell Ukrtelekom after an approval of a telecoms law, which has not yet been submitted to parliament.
The law is expected to set out rules governing the telecoms market in Ukraine and create an independent regulator.
Yekhanurov said government consultations with foreign experts showed there was no point in privatizing Ukrtelekom without the law.
