Small privatization generates about UAH 9.58B for Ukraine’s state budget over two years

The relevant statement was made by the Ukrainian Economy Ministry, an Ukrinform correspondent reports.

During that period, the Ukrainian State Property Fund held 839 successful online auctions via the Prozorro.Sale system, providing UAH 6.65 billion in direct revenues to the state budget. With UAH 1.2 billion worth of the value-added tax (VAT) paid and the new owners’ commitments to repay the debts of privatized enterprises in the amount of UAH 1.73 billion, the total economic effect from the small privatization of state-owned assets reached UAH 9.58 billion.

“The resumption of privatization amid the full-scale war is an important step, which is already yielding results. The sale of 99 asset packages of state-owned enterprises has brought about UAH 4 billion,” Ukrainian Deputy Prime Minister, Economy Minister Yuliia Svyrydenko noted.

Over the past two years, a total of 2,857 unique bidders have taken part in the auctions. The average competition rate was 4.73 bidders per lot. During bidding, the starting value of objects increased by an average of 2.53 times.

More than half of privatization revenues (UAH 3.79 billion) came from the sale of the asset packages of state-owned enterprises. The new owners acquired different objects, from industrial property and warehouses to hotels and transport vehicles.

A reminder that, in September 2022, the Ukrainian government resumed small privatization following the adoption of the Law of Ukraine No. 2468-IX, which facilitated the sale of state-owned assets. The first successful online auction was held in accordance with the new rules on September 19, 2022.