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Year Of A Huge Privatization

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In 2018, the government will once again try to sell the bulk of non-strategic state-owned objects. It plans to get about USD 22 billion from the sale of state-owned objects. To implement this plan, the Verkhovna Rada adopted a new privatization law, which should substantially simplify the procedure for selling state property.

Experts consider it as a good decision to move a privatization list to the Cabinet of Ministers. ‘This may accelerate the process, although it would be logical that parliamentarians decide on the sale of state-owned objects’, Case Ukraine`s senior economist Volodymyr Dubrovsky comments on the bill to the Focus magazine.

He adds that de facto there is a possibility of blocking sales decisions through the parliament, because ‘there are some people directly interested in these enterprises. They are also present in the Cabinet, but they are more in the Verkhovna Rada’.

Some 5% of the country’s privatized property accounts for large enterprises. It is from their sale the budget can generate significant incomes, but it is not easy to sell them.

Volodymyr Dubrovsky says that although the people of Ukraine de jure own state-owned properties certain groups of people de facto feed off of them.

January 31, 2018