Page 11 - UKRRptOct19

The targets for the Economy Ministry are focused on privatisation ​and it plans to sell “hundreds” of state enterprises to “efficient owners." It will create a special fund to control strategic state enterprises. Those that conduct commercial activity “will be corporatized by means of transitioning them into corporations,” the program said. The plan also calls for liquidating at least a thousand state firms that are inefficient. “The state will no longer spend the costs of taxpayers to support ineffective, loss-producing enterprises,” the program said.
The economy ministry also expects that launching the farmland market in October 2020 (as stipulated by the draft law) will boost productivity by 6% p.a. As a result, the ministry expects land lease rates will rise to UAH4,000/ha on average in 2024, from UAH1,700 in 2018. It plans to provide state support for small farmers who will take loans for land purchase so that their effective borrowing rates won’t exceed inflation. It also plans to deregulate land management, equalize the land tax, introduce safeguards against land raids and compile a complete farmland cadaster by the end of 2020.
The targets for the Infrastructure Ministry include restructuring
Ukrzaliznytsia​ (Ukrainian Railway) to separate it into infrastructure, cargo and passenger divisions. It also plans to complete an IPO of Ukrainian Railways.
“The government’s action program is so “ambitious”, as characterized by PM Honcharuk, that in our view, its key targets do not look achievable in five years. From the document, we see no clear drivers that could lead to massive FDI and that fast economic growth. That said, the government will have achieved an economic and financial breakthrough if it is able to reach just half of its goals. Meanwhile, concrete steps in farmland reform and privatizing state enterprises will be critical to fulfil if any of the more ambitious goals are to be achieved,” Alexander Paraschiy of Concorde Capital said in a note.
2.7 ​Politics - misc
The State Department approved and Congress signed off on a $39mn sale of additional Javelin anti-tank weapons to Ukraine on October 1​, according to three officials familiar with the decision. The sale of 150 anti-tank missiles and two additional missile launchers could be announced later on Tuesday, according to one of officials, all of whom asked not to be identified since the decision hasn’t been announced. Ukraine requested the weapons early this past summer. The US sold Ukraine over 200 missiles and 37 launchers in 2018. This sale is separate from the $250mn of congressionally authorized military aid to Ukraine that was held up by the Trump administration for months until after President Donald Trump’s heavily scrutinized July 25 call with Ukraine President Volodymyr Zelenskiy that’s at the centre of a Democratic impeachment inquiry in the House. Defense Department officials said $214mn of that aid has been obligated to buy equipment for Ukraine but the Pentagon Comptroller’s office declined to give a list of equipment bought. The potential equipment includes.50-caliber sniper rifles capable of disabling armored vehicles, night vision goggles, shoulder-fired grenade launchers and additional radar to pinpoint Russian artillery, according to documents.
Ukraine is unlikely to sign a new Extended Fund Facility (EFF) deal with the International Monetary Fund (IMF) until December, according to Prime Minister Oleksiy Honcharuk. ​The IMF team was in Kyiv for the last two weeks, but left on September 27 without coming to a new agreement. The new administration of Ukrainian president Volodymyr Zelenskiy had hoped to rapidly upgrade Ukraine’s existing Stand by agreement (SBA) that expires after
11​ UKRAINE Country Report​ October 2019 ​ ​www.intellinews.com