Page 49 - UKRRptFeb19

Company, coal mine Krasnolymanska, producer of power generators ElektroVazhMash, fertilizer producer Odesa Portside Plant, pharmaceutical company Indar and the President Hotel. Other companies are financial company UkrAgroLeasing, chemical company SumyKhimProm, the remaining assets of machinery giant Azovmash and the remaining assets of chemical giant Oriana.
Also, the government is planning to sell its controlling stakes in five power DisCos: Ternopiloblenergo (TOEN UK), Zaporizhiaoblenergo (ZAON UK), Kharkivoblenergo (HAON UK), Mykolayivoblenergo (MYON UZ) and Khmelnytskoblenergo (HMON UK). The government excluded from the privatization list four small heat & power plants.
Ukraine’s planned proceeds from its privatization in 2019, as foreseen by the state budget, are UAH17.1bn (about $0.6bn), while the IMF estimates the proceeds will be UAH10.5bn ($0.36bn), according to its recent memorandum.
Although the government plans on $600mn in revenue from large privatizations in 2019, analysts say it will be hard in a year with two elections to privatize large, socially sensitive state companies like Centrenergo. One of Ukraine’s leading electricity producers, Centrenergo supplies electricity to Kyiv, Kharkiv and Donetsk regions. Fired by coal or natural gas, Centrenergo’s three thermal power plants - Vuhlehirska, Zmiivska and Trypilska – have a design capacity of 7,665 MW - 14% of Ukraine’s generating capacity.
Privatization of ‘small’ state properties – under $9mn – are to continue.
Since August, sales through ProZorro.Sales, the electronic auction platform, have brought the state about $15mn. Stepan Kubiv, said last week at a government meeting: “Of the 3,444 enterprises that operate in Ukraine, no more than 500 generate profit.” Last summer, the government listed 23 large state companies for privatization.
Sale of half of state-owned farm land would bring the state $12.4bn, says Dmitry Yablonovsky, deputy executive director of the centre for Economic Strategy. More government revenue would be generated through taxes on increased economic activity, he tells UNIAN. On Monday, Rada deputies submitted a draft law to extend the land sale moratorium for one more year. It was first imposed in 2001.
Mykolaiv’s Okean shipyard was sold at auction Monday, for $4.3mn, barely one tenth the asking price of $41.1mn . Iryna Serbin, the liquidator, reports that Annona Trading House bought the shipyard, which is located 20 km south of the city, in the historic shipbuilding district.
The government plans to form five more supervisory boards for important state-owned enterprises in 2019 . Minister of the Cabinet of Ministers Oleksandr Saienko wrote this on Facebook. "Next year, we plan to form other five supervisory boards for important state-owned enterprises. Preparations for the selection for Ukrhydroenerho and Energoatom have already begun. Soon, we will choose other three companies," Saienko wrote. According to him, these will be independent supervisory boards with mostly independent members who have successful management experience and significant achievements. Saienko reminded that this year's updated Nomination Committee had formed supervisory boards for three large
49 UKRAINE Country Report February 2019 www.intellinews.com