On 11 August, the Cabinet of Ministers of Ukraine decided to transfer 30 unified property complexes of state-owned enterprises, institutions and organisations to the State Property Fund of Ukraine.

The Government order concerns facilities, 25 of which are managed by the National Academy of Agrarian Sciences of Ukraine. The area of agricultural land of these enterprises is about 100,000 hectares. The Fund's task is to consolidate state-owned agricultural land and create a tool for leasing this land through transparent auctions of the state system Prozorro.Sale. The mechanism of land lease at transparent auctions was made possible by the draft law 7588. The first auctions will take place in early 2024.

Two other enterprises to be transferred to the State Property Fund were previously managed by the State Fisheries Agency, and one each by the Ministry of Agrarian Policy, the State Agency for Restoration and the State Agency for Energy Efficiency and Energy Saving. The Fund should find an effective owner for these assets, and use the investments raised to meet the needs of the Ukrainian Defence Forces.

"The Government's policy remains unchanged – only strategic enterprises with effective corporate governance should remain in state ownership. All other enterprises still in state ownership should be either privatised or liquidated. I am confident that after privatisation, such enterprises will be able to attract private investment and become more efficient, and the state budget will be replenished with funds from their sale," explained Deputy Minister of Economy of Ukraine Oleksii Sobolev.

Most of the enterprises transferred to the State Property Fund are research farms of the National Academy of Agrarian Sciences of Ukraine. The list also includes the State Organisation "Agrarian Fund", SE "New Technologies of Road Construction" and SE "Ukrainian Methane Centre".

In addition, the Government has appointed the State Property Fund as the authorised management body to manage the property of the State Specialised Enterprise “Ukrspetstorg” and the State Enterprise “Lysychansk Combined Heat and Power Plant”.

The State Property Fund will also control the activities of the state-owned association of material and technical resources “Ukrpostachpresa”, the Ukrainian State Corporation for the Construction of Subways and Tunnels “Ukrmetrotunelbud” and the Ukrainian Cooperative State Corporation for Agricultural Construction “Ukragroprombud”.

As a reminder, the Government plans to launch a large-scale privatisation through the Prozorro.Sale system.

For reference:

All privatisation objects are divided into small-scale and large-scale privatisation objects. The small-scale privatisation objects include unified property complexes of state-owned enterprises and blocks of shares, construction-in-progress and social and cultural facilities, certain movable and immovable property with a value not exceeding UAH 250 million. If the value is higher, these are objects of large-scale privatisation.

All objects are sold exclusively through Prozorro.Sale auctions, which are based on the principles of complete transparency – the entire sale process is public and open to avoid corruption.

Over the five years of implementing the small-scale privatisation reform, Ukraine has earned almost UAH 14 billion from the sale of state and municipal property through Prozorro.Sale online auctions to budgets of various levels, of which almost UAH 3 billion was generated after the full-scale invasion.