Lawmakers have voted to unblock large-scale privatization in the country, opening the way to the long-awaited sale of large public assets to private companies.
The Ukrainian parliament passed the bill to lift the ban in the second reading on March 30.
The State Property Fund, a body responsible for privatizing nearly 3,700 state-owned enterprises across Ukraine, started selling big state assets in 2020, but the government put the privatization on hold due to the pandemic.
The Odesa Portside Plant, distilleries belonging to defunct liquor monopolist Ukrspyrt and regional energy distribution companies (oblenergos) are among the enterprises that the fund is trying to sell.
The state budget plans to get at least $430 million from privatization this year, including $320 million from large-scale privatization and $110 million from small-scale privatization.
In 2020, the fund managed to make nearly $110 million by selling off small assets. The target was just $18 million.
Among other objects, the Dnipro Hotel in central Kyiv was sold in July 2020 for $41 million to esports entrepreneur Alexander Kokhanovskyy, who promised to turn it into an esports venue, where professional gamers can compete.
The money received from the privatization will be used to repay state debts and fund social programs. Privatization also aims to intensify investment activity in the country by making enterprises transparent and efficient businesses.
For many years until 2018, the state had managed to sell only few old enterprises to private investors — often for knockdown prices and through shadowy schemes — as the process was opaque and complicated.
To buy a state asset today, potential investors have to register on the website of e-procurement system Prozorro.Sale. They need to upload documents and pay warranty and registration fees to participate in an auction. The top bidder wins, signs a contract and pays for the property.
