Government identifies SOEs to be privatised, offered for concession

On 21 July 2017 the Ministry of Economic Development and Trade of Ukraine published lists of state-owned enterprises (SOEs) which the Government plans to privatise, offer for concession or liquidate. Out of a total of 3,444 SOEs, 893 SOEs are to be transferred into private ownership during 2017-2020.

The SOEs to be privatised include several power distribution companies (‘oblenergos’), chemical plants such as Sumykhimprom, engineering businesses such as Turboatom, and a number of large banks (e.g., Oschadbank, Privatbank and Ukreximbank). The Odesa Port Plant, which was to have been privatised in 2016, is again on the to-be-privatised list, and is scheduled for sale during the second half of 2017 – early 2018.

Roads, woodland and two international airports (including Ukraine’s main airport, Boryspil) are expected to be transferred into concessionary agreements.

Earlier this month, the Government approved a draft privatisation law, which is now being reviewed by the National Reforms Council. The text of the draft law is not yet available, but we understand that it will be a significant departure from the existing, 1990s-style privatisation law. In particular, the Government has said that the new law will allow foreign investors to have the privatisation documentation governed by English law.

If you would like to receive further information in connection with the above, please contact Dmytro Fedoruk and Zoryana Sozanska-Matviychuk.