SPFU attracted almost UAH 10 billion from the sale of state property — the results of the 5th year of the reform of small privatization
During the five years of implementation of the reform of small privatization, Ukraine earned from the sale of state and communal property through Prozorro.Sale online auctions of almost UAH 14 billion to budgets of various levels. Of these,UAH9.8 billion went to the state budget from the sale of objects by the State Property Fund (SPFU),UAH3.8 billion came to local budgets as a result of privatization auctions announced by communities.
During thewar, privatization e-auctions helped to earnUAH2.8 billion for the state and local budgets at the initial cost of objects of one billion. Of these revenues, the share — UAH 2.4 billion — is state income from the sale of SPFUfacilities. An average of 4 participants competed for objects from the Fund, thanks to which the price increased almost threefold.
"Last September, we managed to restore small privatization, thanks to which the Ukrainian budget has already received over UAH 2.4 billion. This is the contribution of the Fund and Ukrainian business to support the Defense Forces and our joint Victory. I am grateful to all Ukrainians who today are ready to compete at auctions for state objects and invest in them. These are brave people. Creating a new business, they work despite the war — for the Ukrainian economy. I am sure that this is a good sign for the international investment community. I hope that the resumption of large-scale privatization will allow us to attract strong international partners as well. Together with Ukrainian and foreign investors, we will fruitfully work on the restoration of Ukraine," said the Chairman of the State Property Fund of Ukraine, Rustem Umerov.
The five most expensive objects privatized during the 5 years of the reform included the Dnipro Hotel — UAH 1.1 billion, Kaluska CHP — UAH 801 million, the Lviv Correctional Colony — UAH 377 million, the Hermitage Hotel — UAH 311 million, Odesavinprom — UAH 235 million hryvnias All these objects were in state ownership.
"Five years ago, Ukraine started small privatization — a reform that became one of the key ones, both for the economy and for the state as a whole. During this time, almost 5,000 state and communal facilities across Ukraine, of various sizes and investment attractiveness, have found new owners, who are creating businesses, new jobs and paying taxes there," said Oleksii Sobolev, Deputy Minister of Economy of Ukraine.
The total starting value of the property sold was UAH 6.3 billion, in return, the state and local budgets received more than twice as much from their sale. This became possible thanks to the equal access of everyone to participation in bidding and the openness and transparency of online auctions.
"My colleagues in the parliament and I are constantly working on improving the privatization legislation so that the state and communities have every opportunity to attract private investors to objects that are not strategically important," added Oleksii Movchan, Deputy Head of the Parliamentary Committee on Economic Development.
For five years, more than 9,000 participants - these are small, medium and large businesses - competed for the right to purchase state or communal property at privatization e-auctions. On average, at least 3 participants compete in each of the privatization auctions.
"Transparent competitive privatization was immediately launched in 2018 according to uniform rules for both the state and communities - through online auctions in the state electronic trading system Prozorro.Sale. This fundamentally changed their approach to the logic of managing their assets: the state and communities began to see opportunities for attracting investments in objects that for years only burdened budgets," said the Chairman of the Supervisory Board of JSC "Prozorro.Sale" Ilya Mykhaylov.
On June 30, 2023, the conference "Five years of small privatization reform: from the first auction to 14 billion hryvnias in budgets" will be held. Details and registration for the event are available at the link.