Page 42 - UKRRptSept20

the value of, which does not exceed 250mn hryvnia (9mn US dollars). The second group includes assets worth over 250mn hryvnia, which are called objects of large-scale privatization.
Over the past two years, auctions for the sale of small-scale privatization objects, held through the electronic platform ProZorro.Sale, have brought Ukraine over UAH2.5bn ($90.6mn).
Leases for 4,262 empty buildings totaling 2.5mn square meters – or 10 times New York’s Empire State Building – will go up for electronic auction this fall ​under streamlined rules approved last week by the Cabinet of Ministers, announces Leonid Antonenko of the privatization department of the State Property Fund. The full of list of leases to auctioned by ProZorro.Sales includes: 1,070 offices, 837 warehouses, 566 factories, 61 spaces at airports, and six sites for renewable energy plants at Chornobyl. While much of the vacant space is in the big five cities, there are thousands of square meters up for lease in Cherkasy, Kropyvnytskyi, Mykolaiv, Rivne and Zaporizhia.
Privatization of big state companies could bring $1bn to national budget in coming years​, Prime Minister Shmygal told the Cabinet of Ministers Wednesday. After a pause during the initial market turbulence of the coronavirus pandemic, sales of big state companies started last week with auction on Prozorro.Sale of Kyiv’s Dnipro hotel for $41mn. This year, the government plans to raised $435mn through sales of state property, half through ‘small privatization’ – under $10mn – and half through ‘big privatizations.” Shmygal said: “We have high expectations from large-scale privatization.”
By the end of this year 780 state companies should be transferred to the agency responsible for privatizations,​ the State Property Fund, Dmytro Sennychenko, head of the Fund, tells the UBN. This would be eight times the number shifted to the privatization agency in the previous 15 years. About 40% of these companies are not viable and have to be liquidated, he estimates.
Twelve distilleries of Ukrspirt, the state alcohol producer, may be next in line for privatization​, Dmytro Sennychenko, chairman of the State Property Fund, said on August 11 at the opening in Kyiv of AgroExpo 2020. Until the state monopoly on alcohol production was abolished earlier this year, Ukraine’s production of ‘cooking’ alcohol had quadrupled during the 2010s. For the Ukrspirt privatization to be successful the government must first approve the Alcohol Reform and Development Program, regulations which will provide for the procedure and conditions of sale.
Following the sale of the Dnipro, the Fund is putting up two regional hotels up for auction​. The high end Slovyanskyi Hotel in Novgorod-Siversky, Chernihiv region has a starting price of $2mn. Separately, on Aug. 14, an auction will be held for a half-built, 274-room hotel on Railroad Square, Slavutych, 180 km north of Kyiv. The starting price is $200,000.
42​ UKRAINE Country Report​ September 2020 ​ ​www.intellinews.com