Small privatization brought the state budget for the year 4 billion UAH. This is a good help to enhance Ukraine's defense capability. The Cabinet promises to unlock even great privatization. But whether it will happen before the abolition of martial law is unknown.
The restoration of privatization was a fairly successful step. According to the State Property Fund (FDM), for 9 months of 2023 the state budget received UAH 2.7 billion from privatization. This is three times more than in the same periods in the pre -war years. From September 2022, when privatization, in fact, was unlocked, the budget revenues amounted to UAH 4 billion.
The total number of objects and assets that privatized SPF since the beginning of 2023 exceeded 300, and the number of participants in privatization auctions was over 1600.
Small and average objects cost up to UAH 250 million from the hammer. Mostly, they are "dead" enterprises and administrative real estate, which are used as platforms to deploy a new business.
At the same time, the launch of large privatization, which is fitted with large strategic enterprises, is constantly postponed.
Which privatization objects are in demand
The SPF sell 40-50 different objects and assets on a monthly basis. Accordingly, a weekly fund conducts about a dozen privatization auctions. Of course, not all of them are successful. But on average a week, SPF replenishes the state budget for the amount of 50 to 200 million UAH.
It all depends on what is sold. As practice shows, the most willing to distillery (EIICs), the assets of the agro -industrial sector (bakery, elevators) and mining enterprises, as well as non -residential real estate (starting with administrative and office buildings and ending with sanatoriums).
According to SPD, more than 60% of the lots sold in 2023 are just commercial real estate, which entrepreneurs are restored and used to open new stores, offices or cafes.
By the way, competition at auction is about 5 applicants. Just so many potential buyers compete in one lot.
What assets and objects have already been sold
Under the framework of small privatization, mostly non -working and problematic objects are sold. These are bankrupt enterprises or state-owned enterprises that have big debts, appear in criminal cases and lawsuits.
Since September 2022, the largest objects sold as part of privatization were:
Hermitance Hotel (Kyiv) - UAH 311 million;
SE “Ukroboronresurs” (Kyiv) - UAH 210 million;
SE “Rivnetorf” (Rivne region) - UAH 205 million;
Ust-Danube seaport (Odesa region)-201 million UAH;
JSC “Lviv Jewelry Plant” (Lviv) - UAH 185 million;
EIC of Volyntorf SE (Volyn region) - UAH 212 million.
According to the standards of small privatization, these are quite large lots, which, moreover, were sold with a significant increase in price. For example, the Hermitage Hotel had a starting value of 21 million UAH, and the port "Ust-Danube"-60 million UAH.
But as stated above, the new owner receives a lot of worries with the privatized asset.
The Hermitage Hotel will not resume work without renovation. Experts evaluated that it was necessary to invest up to UAH 350-400 million. In fact, this is almost the same amount that was spent on buying it. Sold state enterprise Rivnetorf does not have a special permit for the production of peat, and in addition to this the debts of the enterprise exceed UAH 7 million. And with the privatization of "Ust-Danube" and the case happened: the SPM mistakenly sold not only what belonged to the state, but also the objects of infrastructure that are already privately owned.
What else will sell the State Property Fund
As of October 10, there were more than 1,300 objects in privatization. Among those assets that will be sold by the end of October and early November, just over 20 lots.
In particular, on October 27, the Fund will hold an auction for the privatization of the recreation center "Sea", located in the Odessa region. Its starting price is 808 thousand UAH.
On October 31, bidding will be held on sale of EIIC of SE “Dniproblagrostandart” with a starting price of 109 thousand UAH.
On November 14, an auction was planned for which an administrative building in the Lviv region will be exposed to 131 square meters. Its initial cost - 413 thousand UAH.
But the largest lot is 50%+1 promotion in the authorized fund of the Rivne Radiotechnical Plant. The auction will be held on November 7, SPF intends to start bidding with 121 million UAH. Like many other objects, the plant is not functioning. It was stopped in 2013, and after a while was recognized as bankrupt.
By the way, privatization is not only the sale of state assets, but also the delivery of state property. There are, of course, smaller. But in just 9 months of 2023, the State Property Fund accumulated UAH 572.1 million and concluded almost 1.3 thousand new leases. Thus, the plan to raise the FDM rental funds was done by almost 80%.
