SPFU postponed privatization of large companies until the end of the crisis

Until the situation in global markets stabilizes, the State Property Fund of Ukraine (SPFU) will not put large privatization facilities for tenders. This was reported by the Head of the State Property Fund, Dmytro Sennychenko, on his Facebook page.

“Amid global economic turbulence caused by the COVID-19 epidemic, we’ve decided to refrain from putting large facilities and state-owned enterprises for privatization tenders until the situation in financial markets stabilizes,” he wrote.

Along with that, Mr Sennychenko emphasized that the political course towards privatization and raising investment in the Ukrainian economy remains unchanged. Non-strategic facilities and surplus assets must be transferred to competent investors through fair and competitive tenders.

According to him, the companies’ preparations for attracting investors continue.

“Audits and development of marketing materials are under way to quickly put facilities for tenders right after the crisis,” said the SPFU Head.

He added that small privatization will continue.

“In the time of a distrust in world currencies and volatility in financial markets, privatization of small real property is an opportunity for common Ukrainians to retain their savings and at the same time make an investment in their country,” explains Dmytro Sennychenko.

According to Interfax-Ukraine, planned privatization revenues in the updated draft state budget for 2020, submitted to the Parliament by the government on 29 March, were reduced from ₴12 billion to ₴0.5 billion.

As reported earlier, the SPFU planned in 2020 to announce tenders for privatization of six large facilities. Kyiv-based Dnipro Hotel and the United Mining and Chemical Company (UMCC) would have been first on the list — in April and May this year respectively. They would have been followed by Odesa Port Plant (OPP) — tentatively in late August.