Ukraine. Privatization to bring USD 5-7.5 billion in 2012-2014
2012-01-13 15:45:45
The Verkhovna Rada of Ukraine has adopted the State Privatization Program submitted by the Government, under which until 2015 it is planned to provide budget revenues of about 40-60 billion UAH (1 USD - 7.99 UAH).
Implementation of the program is to reduce the share of public sector in the economy to 25-30% of GDP (in 2010 the State Property Fund estimated it at 37%).
The program aims to complete the privatization process lasting in this country for 20 years, with the sale of all small and medium sized facilities during the second phase (second half of 2012 - 2013).
During the first phase (first half of 2012), it is planned to prepare the necessary legal, regulatory and institutional framework for transition to privatization based on the principles determined by the program.
The high pace of privatization is expected to be achieved through simplifying procedures for the preparation and methods of sale. In particular, for the sale of unattractive stakes, bottom price restrictions were lifted; it is also allowed to divide them, sell on the exchange or offered for sale with price unannounced.
At the same time, in privatization of more than 50% of the shares in strategic companies (Group G), requirements to buyers and terms for post-privatization use of such facilities will be put forward.
The state retains controlling stakes in the enterprises of Group G, with the sale of the remaining shares in small packages on stock exchanges; the size of the controlling interest increased from 50%+1 share to 60%+1 share.
Since the beginning of this year, the State Property Fund has received more than 2.4 billion UAH from privatization, which is actually a quarter of the annual plan of privatization proceeds. Since the beginning of the year the state budget has received 1,932.1 million UAH from the sale of 45.103% in the state-run shareholding of PJSC ZakhidEnergo, as well as 467.6 million UAH from the sale of 40.061% in Donetskoblenergo.
In 2012, it is planned to receive from privatization 10 billion UAH.
As reported, in 2011, privatization brought to the state budget 11.49 billion UAH with the planned 10 billion UAH. The main income came from selling 92.79% of Ukrtelecom - 10.575 billion UAH, and 25% of Kyivenergo - 0.45 billion UAH.