Ukraine moves to speed up privatization of state-owned assets
If passed, the bill could help alleviate bottlenecks the State Property Fund has repeatedly faced when trying to sell state-owned assets and help shore up funds for the state budget.
Ukraine has taken steps to expedite the privatization of state-owned assets after parliament approved the first reading of a bill on October 12. This new legislation aims to streamline the auction of thousands of state-owned assets, alleviate bottlenecks faced by the State Property Fund, and generate additional revenue for the state budget.
The bill introduces a strict 20-day deadline for transferring assets to the fund, which currently takes months or even years to complete. If the bill passes, the fund can take over assets that miss the deadline. The bill also proposes creating a state-owned consulting firm to prepare assets for privatization, receiving a 5% fee from successful sales.
The second reading of the bill could occur in the near future, potentially being adopted by early December. This move is crucial for Western partners like the International Monetary Fund and the World Bank, who require privatization as a condition for continued financial support to Ukraine. The government aims to raise $295 million by the end of 2026 through privatization, but the State Property Fund has struggled with staffing shortages, low salaries, and poor government communication about viable projects.
With about 3,000 assets in the government's portfolio, including factories and bakeries, the goal is to reduce this number to 100 key enterprises. Since the beginning of Russia's full-scale invasion, 1,200 assets have been added to the State Property Fund's portfolio, with around 200 more expected by the end of the year.
Written by urgent.news from Kyiv Independent's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
