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macro-financial assistance to Ukraine. The EU continues its active work in Ukraine and supports its people.” Next Tuesday, the IMF Board is to meet in Washington to review a $3.9bn, 14-month standby program for Ukraine.
Ukraine's state-owned natural gas monopoly Naftogaz transferred UAH8.1bn ($291mn) of dividends to the state budget in November, according to the schedule approved previously by the nation's government, the company said in a statement on December 6. As of December 6, the company paid over UAH21.5bn in dividends out of UAH29.4bn planned for this year. Naftogaz has to pay the remaining UAH7.9bn by December 25. According to the government’s instructions, Naftogaz’s dividends for 2018 accounts for 75% of the company’s net profit generated in 2017. In 2017, Naftogaz paid UAH13.3bn of dividends, which was equal to 50% of the company’s net profit posted in 2016.
The central banks of China and Ukraine have renewed for three years a 15bn yuan -- $2.2bn – currency swap agreement . In Beijing, Yakiv Smoliy, governor of the National Bank of Ukraine, and Yi Gang, governor of the People’s Bank of China, signed the yuan/hryvnia currency swap agreement. “China is the second largest trade partner of Ukraine in trade, and the role of the yuan in international trade is growing,” Smoliy said. “Access to the funds received under the contract will contribute to further economic cooperation between our countries.”
"In 2019-2020, Ukraine has to pay off about $12bn in foreign debt,
including interest payments. We do not have access to other funding channels without the IMF program, namely the funds from the European Union, the World Bank. Therefore, the proposal to sign a new program with the IMF is economically feasible," Governor of the National Bank of Ukraine Yakiv Smoliy said in an interview with Vox Ukraine.
6.1.2 Budget dynamics - privatization
Ukraine has cancelled the auction for a controlling stake in state power producer Centrenergo , the head of the State Property Fund, Vitaly Trubarov, said on December 11. The auction was expected to be won by insiders with ties to President Petro Poroshenko. In what should have been the biggest privatisation auction of the year, the government was to offer 78.289% stake in the company that supplies power to Kyiv and the surrounding region with a starting price of UAH5.98bn ($215mn). The auction was already controversial after it emerged that the most likely winner was going to be Kyiv-based Ukrdoninvest that is controlled by businessman Vitaliy Kropachev , a businessman connected to Poroshenko. The State Property Fund cancelled the auction after throwing out two bids, including Ukrdoninvest’s bid, because of insider ties.
Ukraine’s Cabinet approved at its January 16 meeting its revised "big privatization" list of state companies slated to be sold in 2019 , Interfax-Ukraine reported the same day. The list, which has been reduced to 16 from 23 last year, still includes power GenCo Centrenergo (CEEN UK), whose tender failed to occur in December. The government decided it will make another attempt to sell it at the same starting price of UAH5.98bn for a 78.3% stake.
Other carryovers from 2018, for, which the government has already selected privatization advisers, include titanium ore producer United Mining & Chemical
48 UKRAINE Country Report February 2019 www.intellinews.com