Dmytro Sennychenko named three factors on which the success of privatization in Ukraine depends

On Thursday, December 9, 2021, during the Ukraine Investment Roadshow economic conference in London, the Chairman of the State Property Fund Dmytro Sennychenko identified 3 key factors on which the success of the privatization program in Ukraine depends.

The first step is the political will to carry out privatization from all government bodies. Reforms of the privatization scale require the consolidation of the efforts of various institutions and officials: the President of Ukraine, the Cabinet of Ministers and the Verkhovna Rada.

The second step is to accelerate the privatization of non-core assets, which are not of strategic importance and only cause additional losses to the state. If governmental authorities do not want to transfer objects for privatization, the draft law allows the Government to make such decisions.

The third step is to increase the institutional capacity of the State Property Fund, which is the basis for the successful implementation of the privatization program through legislative changes. The key in this process is the adoption in the second reading of the draft Law No. 4572.

Developed jointly with MPs and representatives of business associations, the draft Law provides for fundamental changes in the privatization process.

In addition to simplifying bureaucratic procedures during the transfer of objects and holding auctions, draft Law No. 4572 legally protects large-scale investments in the Ukrainian economy by extending the possibility of applying the law of England and Wales in large-scale privatization transactions for 3 years.

In the Memorandum signed with the IMF, Ukraine confirmed its intention to approve the proposed changes for the successful continuation of the privatization program. Earlier, the Verkhovna Rada of Ukraine supported the draft Law No. 4572 in the first reading, while its re-consideration is expected.

Since the beginning of 2020, the privatization reform has resulted in thousands of successful auctions worth over UAH 8 billion. This year, Ukraine has attracted about UAH 6 billion in the course of privatization, which is a record figure for the last 9 years.

“We managed to make privatization transparent and efficient. The reform was based on the principle “everyone knows everything” - we have fully disclosed information about available objects in virtual data rooms, we are in constant communication with investors, and the auctions themselves are now held competitively and in equal conditions for all participants,” Sennychenko sums up.