Millennium Post

Ukraine for large-scale privatisation

The Ukrainian government has excluded 1,200 companies from a list of strategic enterprises in a bid to prepare for large-scale privatisation, Kommersant Ukraine business daily reported on Wednesday.

The list of state-run enterprises excluded from sale has been cut more than five-fold, from 1,492 to 296 businesses, including the Turboatom power engineering giant, removed from the list at the last moment, Economic Development and Trade Minister Petro Poroshenko was quoted by the newspaper as saying.

The document allows large-scale privatisation of Ukrainian coalmines, with the state expected to retain only 11 coal enterprises in Donetsk and seven in the Luhansk regions in southeastern Ukraine.

Privatisation will also extend to alcohol-producing factories, radio and television broadcasting centres, publishers, and also energy companies, including debt-saddled state energy firm Naftogaz.

‘This is a bold step that may radically change the situation in the energy sector,’ Energy Research Institute director Dmitry Marunich said.

‘Admission of private capital to it (the energy sector) may considerable improve the situation but only if privatisation is transparent and the state retains control of the sector.’   


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