Page 44 - UKRRptSept19

government should “offer an exchange of the warrants into some fixed-income instrument. Recall, Danylo Hetmantsev (current MP and head of the parliamentary finances and taxation committee) said in early June that the government should consider such an exchange.”
6.1.4 Budget dynamics - privatization
The previous government’s privatisation programme failed to gather much momentum and attempts to sell big assets like Odessa Port Plant (OPP) failed multiple times.
The new government will start off more modestly with a list of 500 small and medium-sized enterprises (SMEs) by December 1 that will be put up for sale via the ProZoro government electronic auction system. Ukraine has a total of circa 3,600 state-owned companies, reports UBN.
The current list of state companies barred from privatisation will be abolished and a new, shorter list of companies exempted from privatisation must be prepared by the Rada by October 1. Big state-owned companies listed for privatisation must have privatisation plans ready, drawn up with the participation of investment advisers, by December 1.
The first tender for a big privatisation must be offered no later than April 1 next year by Tymofei Milovanov, Minister of Economic Development, Trade and Agriculture.
In the latest Kyiv court decision to allow privatizations, Kyiv’s Commercial Court unblocked the privatization of the capital's President Hotel, allowing Concorde Consulting and the State Property Fund of Ukraine to prepare the state-owned hotel for sale. In two other decisions in the last month, Kyiv courts removed unblocked the privatizations of Centrenergo, Odesa Port Plant, Krasnolimanska Coal Company, Elektrovazhmash, Indar, and the United Mining and Chemical Company. President Zelenskiy advocates privatization -- and an overhaul of Ukraine’s judiciary.
Preparing for a national farmland market, SETAM, the state-owned centre for Electronic Trading, has conducted 2,097 auctions for 90,124 of hectares of state-owned farmland since a pilot program for competitive bidding start fall. Using Blockchain technology and working with the national land Cadaster, the auctions netted $5.6mn, almost triple the starting prices. Of this money, $3.5mn went to local budgets, reports Victor Vishnev, director- general of SETAM.
Selling unused state property has caught on across the nation since the small-scale privatization started one year ago on the ProZorro.Sales election auction platform. In the first year, 1,142 state properties were sold, garnering $60mn for cities and for the State Property Fund. Competition bid prices up an average of 60% from starting levels. So far, 239 cities, towns and territorial communities signed up for the program which auctions state properties valued at less than $10mn. Top municipal privatizers are: Lviv --
44 UKRAINE Country Report September 2019 www.intellinews.com