Government of Ukraine transferred more than 800 companies to State Property Fund, to be privatised

First Deputy Economy Minister Denis Kudin announced that the Ukrainian Government decided to transfer more than 800 enterprises with assets worth UAH 45 billion to the State Property Fund of Ukraine (SPFU).

According to available information, in this list, in particular, Artyomsol, Konyarstvo of Ukraine, NSC Olympiyskiy, Odessa Film Studio, coal enterprises.

This is the largest transfer of enterprises in the term of this government. In fact, now only assets in the field of energy, infrastructure, defense industry, culture and standardization and metrology remain subordinate to the ministries.

Denis Dudin, First Deputy Economy Minister

Kudin clarified that so far the SPFU has not been transferred to enterprises in respect of which restructuring or transformation to another organizational form is underway: for example, from a state enterprise to a state institution or state organisation, or companies in a state of liquidation, or perform service functions.

The next step is for the State Property Fund. We expect that by mid-November the Fund will be able to actually start working as a management body for these and other enterprises, regarding which the decision to transfer was made earlier,” said the first deputy head of the Ministry of Economy, who was previously responsible for managing state assets in the Fund .

Kudin recalled that the goal of the reform is to reduce the size of the state in the economy and stimulate private entrepreneurial initiative. According to him, the Fund will make a decision on privatization of some enterprises, while others will be consolidated into asset management holdings and will bring dividends to the budget.

The State Property Fund of Ukraine would like to become a single manager of all state property in the country, while it is currently distributed among 96 different state departments, said the new head of the SPFU Rustem Umerov.

Speaking at the Rebuilding Ukraine forum organised by UkraineInvest last week, he expressed the opinion that such centralization would improve the efficiency of state property management.

Rustem Umerov was appointed new head of the SPFU by the Rada in early September 2022. He previously announced plans to create a Sovereign Fund, which would unite the main state enterprises, as well as the intention to make the SPFU the sole manager of all state property in the country, while currently it is distributed between 96 different government departments.

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