Government hopes to attract UAH 12B from privatization in 2021 - Shmyhal

Government hopes to attract UAH 12B from privatization in 2021 - Shmyhal

Ukraine did not conduct large-scale privatization this year due to the pandemic, the economic crisis and the government's fears that prices for privatization facilities will fall, but UAH 12 billion is to be raised from privatization next year, Prime Minister Denys Shmyhal has said in an interview with the Ukrayinska Pravda online news site.

When asked why there was no large-scale privatization this year, except for the privatization of the Dnipro Hotel, Shmyhal said that this was due to the pandemic, investors facing restrictions on movement and action, and the economic crisis. "We were worried that there would be a fall in prices for both real estate and facilities of large-scale privatization. Well, such facilities need a lot of preparation, because there are a lot of documents that have to be agreed upon, in addition to court decisions, disputes, etc. The State Property Fund is dealing with this now," he said.

According to Shmyhal, the Dnipro Hotel was the best option, and it could be put up for sale quickly. "It was a kind of test of how the market will react, despite the fact that Dnipro did not belong to objects of large-scale privatization. It's an object of small-scale privatization, which, however, was sold more expensively than some objects of large-scale privatization," he said.

In addition, Shmyhal said, another gas field was put up for sale, and, instead of the expected UAH 400 million, UAH 650 million was raised at an auction. "These examples showed that the corona crisis does not affect privatization. Therefore, we conducted the privatization of a whole number of distilleries," he added.

According to Shmyhal, next year the authorities are preparing six objects of large-scale privatization and about 30 objects of medium-scale privatization. "Next year we expect to attract 12 billion hryvnias from privatization," he added.


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