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to open, for example, new stores, offices, or cafes. In total, almost 1,600 entrepreneurs have taken part in the auctions since the beginning of the year. More than five bidders compete for each object on average, 60% more than in 2021.
The Ukrainian government has put some of its most prized assets back on the privatisation list that it has tried to sell many times before without success.
The new large-scale privatisation includes 15 significant entities now available for sale through the ProZorro.Sale electronic auction system. These privatisation objects encompass controlling stakes in critical enterprises such as the major chemical works, the Odesa Port chemical plant, the capital’s main utility, Centrenergo, as well as United Mining and Chemical Company, Ukrainian Energy Machines, Electrotyazhmash, and Sumykhimprom.
Additionally, stakes in several other major enterprises have been included in the list such as Dniprovsky Electric Locomotive Plant, NJSC Ukragroleasing, Indar, Oriana, and Azovmash.
Furthermore, a 51% share of Zaporizhia Titanium-Magnesium Plant and property complexes belonging to Krasnolymanska Coal Company, Uman Distillery, and Aluminum Foil Plant are part of this substantial privatisation initiative, Interfax Ukraine reported on September 18.
The State Property Fund (SPF) of Ukraine is has been trying to sell several of these assets before, but oligarchic interests have caused previous auctions to fail. Recently jailed oligarch Ihor Kolomoisky has been trying to buy both the Odesa chemical plant and Centerenergo for several years without success. Specific deadlines for the sale have not been provided.
It may be that following Ukrainian President Volodymyr Zelenskiy crackdown on the oligarch the state is trying once again to sell off its industrial jewels.
This move towards large-scale privatisation follows amendments to Ukraine's privatisation legislation. These changes, which came into effect on July 21, 2023, introduced technical requirements for conducting such privatisation via online auctions on the ProZorro.Sale platform. The focus is on state assets with a book value of UAH 250mn ($6.8mn) or more.
ProZorro.Sale, as the administrator of the trading system, accredited 19 sites for large-scale privatisation in early August. This accreditation ensures that the sale of these key assets is conducted transparently and efficiently.
Earlier this year, Rustem Umerov, the former head of the State Property Fund and currently the Minister of Defence, expressed the possibility of resuming large-scale privatisation in the third quarter of 2023. These efforts signify Ukraine's commitment to modernizing its economy and attracting investment through the sale of state-owned assets.
6.2 Debt
Why did the national debt increase by $1.01B in August, and to whom
56 UKRAINE Country Report October 2023 www.intellinews.com