Press Conferences

SPF head proposes double budget plan for privatization receipts in 2021 to UAH 12 bln

KYIV. Sept 22 (Interfax-Ukraine) – The State Property Fund (SPF) is discussing the possibility of doubling the plan of privatization receipts in 2021, to UAH 12 billion, with the lawmakers and the government of Ukraine, Head of the SPF Dmytro Sennychenko has said.

"The plan, which has now been submitted in the government budget to the Verkhovna Rada for receipts from privatization in 2021, is set at [UAH] 6 billion. We are now communicating with members of parliament, the government and clarifying the budget indicators for next year. We will propose its increase … up to [UAH] 12 billion," he said at a press conference at Interfax-Ukraine on Tuesday.

Sennychenko said that the SPF has drawn up a list of facilities for privatization for the next year, which includes regional gas supply companies, the Bilshovyk plant and the United Mining and Chemical Company (UMCC).

He said that at the start of the "coronavirus crisis" in March 2020, the Verkhovna Rada lowered the bar for budget receipts from privatization to UAH 500 million, specifying that in 2020 the SPF exceeded it. At the moment, proceeds from privatization are UAH 2 billion, and by the end of the year they are expected to reach UAH 3 billion, the head of the fund said.

"This [the amount of proceeds] will also depend on the necessary financing steps, because one hryvnia invested in the audit of the creation of technical documentation today gives us UAH 71 of budget receipts from privatization. The most important thing is not the funds received from the sale of a facility, the most important thing is the cumulative effect that a private investor gives after investing in the subsequent development of this facility," he said.

According to Sennychenko, this year the SPF has held more than 1,400 auctions and prepared an "investment menu" for the next year "for every taste."