Small-scale privatisation enriched the Ukrainian budget by UAH 6.65 billion
24 October 2024 23:43
In the two years since small-scale privatisation was restored, the State Property Fund of Ukraine has held 839 successful online auctions in the Prozorro.Sale system, and the state budget has received UAH 6.65 billion in direct revenues. These are just two of the figures contained in the report “Two years of small-scale privatisation in the country: results” on the website of the State Property Fund, Komersant ukrainskyi
reports.
Other figures are no less telling.
- Taking into account the VAT paid in the amount of UAH 1.2 billion and the new owners’ obligations to repay the debts of privatised enterprises in the amount of UAH 1.73 billion, the total economic effect of small-scale privatisation of state property reached UAH 9.58 billion.
- Over the two years, 2,857 unique bidders took part in the auctions, of which 16% participated in more than one auction.
- On average, 1.6 successful auctions were held every business day, and the average competition was 4.73 bidders.
- The starting price of the objects increased by an average of 2.53 times during the auction.
- 770 auctions (or almost 92% of auctions) held by the SPFU were held at a price increase, i.e. English auctions.
- Through Dutch auctions, the state sold property worth over UAH 138 million, which is UAH 7 million more than the starting price.
- The sale of 99 unified property complexes of state-owned enterprises brought in the most money to the budget (UAH 3.79 billion, or 57% of total revenues).
- Most small-scale privatisation auctions were held in Lviv (100), Rivne (75) and Vinnytsia (63) regions.
- At the same time, Kyiv (over UAH 1.69 billion), Lviv region (over UAH 1.17 billion) and Odesa region (over UAH 615 million) were the leaders in terms of budget revenues.
It is worth recalling that small-scale privatisation was restored in September 2022, 7 months after Russia’s full-scale invasion. The Government of Ukraine reintroduced small-scale privatisation to attract investment, support the economy and facilitate the relocation of enterprises. This was preceded by the adoption by the Verkhovna Rada of Law No. 2468-IX, which simplified the privatisation procedure, in particular by shortening the timeframe for auctions, introducing online submission of documents and a new payment procedure, under which the contract is signed only after the full payment of the object’s value, which accelerates the flow of funds to the budget. The law came into force on 19 August 2022, and on 19 September, the SPFU held the first successful online auction under the updated rules.
