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Aivaras Abromavicius, who is the Minister of economic development of Ukraine, 15 January 2019 spoke about the existing state-owned enterprises that do not bring any income to the state. At the moment, there are 3374 state enterprises, 1920 of them work, however, only 100 of them produce 91% of total revenue.
During his recent speech in Parliament, the Minister said that - “currently the state has 3374 object. But works of which only 1920. Of these, 265 are in bankruptcy proceedings. 60% of the working enterprises total revenue less than 1 million euros. Therefore, good companies, not so much. The top 20 is 70% of the total net income, Top 100 - a 91% net income and is currently 124 billion UAH”,
After the foregoing remarks, there were a number of discussions, during which Abromavicius urged MPs to adopt the bill № 1567 “About the list of objects of state ownership, not privatizeable”. The essence of the law is to expand the possibility of selling those SOEs that do not generate income.
After, the Minister said - “we need to clear the companies that are already bankrupt or have merged or do not exist. You need to change the system of state ownership and attract private investment in the development of these enterprises. In the list of prohibited for privatization today will be included 1478 objects. Then with the criteria of article 5 of the law on privatization, this list will be expanded to include 551 new object. And objects that are not subject to privatization are defined by law clear criteria. Is the nuclear industry enterprises of the defense complex”.
Based on the comments Aivaras Abromavicius, the Cabinet is also considering the possibility of privatization of enterprises of alcohol industry, as experts predict they will bring a good share of income to the Ukrainian Treasury. Today, the Verkhovna Rada returned the bill № 1567 “About the list of objects of state property not subject to privatization” to the Cabinet of Ministers of Ukraine for revision.