Privatization revenues in 2021 are record-breaking over the past decade

In 2021, the State Budget of Ukraine received UAH 5.1 billion from privatization, which is a record for revenues in a decade. The amount of revenues in 2020-2021 exceeds the previous 7 years in total.

The Chairman of the State Property Fund of Ukraine Dmytro Sennychenko announced this.

“This historic record confirms the correctness of the reforms carried out by the State Property Fund, aimed at openness and transparency of privatization processes. In general, over these two years, our team has provided revenues to the State Budget only from privatization of UAH 7.35 billion. This is more than in the previous seven years in total! This result was achieved in the context of a pandemic, legislative blocking of large-scale privatization, insane opposition to the entire corrupt system of the shadow sector of the economy,” said Dmytro Sennychenko.

According to him, one of the most important achievements is the return of business and investor confidence in the privatization process.

“For me personally, the most important success is the return of business confidence, Ukrainian investors to the State Property Fund and the privatization process itself. We have radically restructured the processes of preparation and launching of privatization objects for auctions. Thanks to the implemented fair rules, when “everyone knows everything”, the average number of bidders out of two previously on average was more than five investors per privatization lot. Accordingly, fair competition creates competition and creates a fair price. Previously, the auction price grew by about one-fifth - 21%. Now, thanks to high competition and openness, the average price increase at auctions is 150%. And these are facts that you cannot argue with,” said the Chairman of the State Property Fund.

He said that for 2 years the Fund has undergone a systemic reform and can continue to work as an effective institution.

“For the further success of the privatization reform, it is necessary to have two conditions: ​​ to accept the accumulated legislative changes by the Verkhovna Rada. The government - to ensure the transfer of non-strategic assets to privatization. In these conditions, in 2022 we can expect a new surge in privatization activity and attraction of investments through privatization. Launched state assets will find their new effective owners at transparent auctions and will be able to develop, create jobs and move the Ukrainian economy forward,” Dmytry Sennychenko is convinced.

The list for privatization in 2022 includes 20 alcohol assets of the State Enterprise “Ukrspyrt” and the concern “Ukrspyrt”, 15 expert and technical centers of state labor service throughout Ukraine, 6 inactive penitentiary institutions of the Ministry of Justice, 2 agro-industrial complexes – “Novopokrovsky” and “Nepolokovetsky” bakery factories, 2 objects of the wine industry – “Odessa Plant of Champagne” and “Kotovsky Wine-making Plant”, property complex of SE “Sea Trade Port of Ust-Dunaisk”, Bilgorod-Dnistrovskyi sea trade port, Skadovsk sea trade port.