Key Takeaways:
– Small privatization of state-owned assets has injected UAH 9.58 billion into Ukraine’s economy over the past two years.
– The Ukrainian State Property Fund conducted 839 successful online auctions via Prozorro.Sale during this period.
– More than half of the privatization revenue comes from the sale of asset packages of state-owned enterprises.
Ukraine Boosts Economy Through Small Privatization
In a significant boost to Ukraine’s economy, the small privatization of state-owned assets has delivered UAH 9.58 billion over the past two years. This landmark achievement underscores the success of this vital financial strategy by the Ukrainian Economy Ministry.
Focused Auctions Propel Revenues
The Ukrainian State Property Fund played a pivotal role in this success. It conducted a total of 839 thriving online auctions via the Prozorro.Sale system during this period. These auctions alone have contributed UAH 6.65 billion in direct revenues to the state budget.
Moreover, an additional UAH 1.2 billion worth of the value-added tax (VAT) was paid due to these transactions. The new owners are also committed to repaying the debts of privatized enterprises amounting to UAH 1.73 billion.
Thus, the cumulative economic effect from the small privatization of state-owned assets reached a whopping UAH 9.58 billion.
Privatization Amid Adversity Yields Results
“The resumption of privatization in the midst of a full-scale war is a pivotal step. The results are already evident. The sale of 99 asset packages of state-owned enterprises has fetched UAH 4 billion,” stated Yuliia Svyrydenko, the Ukrainian Deputy Prime Minister and Economy Minister.
High Levels of Participation and Competition in Auctions
Within the past two years, 2,857 unique bidders participated in the auctions. The average competition rate stood at 4.73 bidders per lot. The starting value of objects remarkably escalated by an average of 2.53 times amid the bidding process, reflecting the high demand.
Majority of Revenue from Sale of Asset Packages
A significant share of the privatization revenue, which amounts to UAH 3.79 billion, came from the sale of asset packages of state-owned enterprises. The winning bidders acquired a diverse range of objects, spanning from industrial property and warehouses to hotels and transportation vehicles.
Resumption of Small Privatization
In September 2022, Ukraine resumed the strategy of small privatization. This was facilitated by the adoption of the Law of Ukraine No. 2468-IX, which further eased the sale of state-owned assets. The first successful online auction in line with the new legislation was held on September 19, 2022.
Overall, this strategy of small privatization has indeed proved to be a boon to Ukraine’s economy. The substantial economic benefits that have accrued in the past two years highlight the efficacy of this approach. This success story stands as a promising sign for the future of Ukraine’s state-owned assets and the greater economy.