Ukraine prepares for major privatization: government allows sale of 25% of Energoatom, but waits for signal from EU
21 January 17:51
Ukraine has announced its readiness for large-scale privatization of major state-owned companies, including the sale of a stake in the strategic energy giant NAEK Energoatom. At the same time, the government acknowledges that such plans can only be implemented with the participation of international financial institutions and provided that European partners are politically and economically ready.
This was stated by Minister of Economy, Environment, and Agriculture Oleksiy Sobolev during the World Economic Forum in Davos, according to "Komersant Ukrainian".
What exactly is the government proposing?
According to the minister, Ukraine is considering selling up to 25% of Energoatom’s shares. This is not a complete privatization, but a partial sale, which, according to the government, could become a source of investment and increase the efficiency of the state-owned company’s management.
“We are ready to sell a quarter of the company,” Sobolev said, stressing that this requires financial support from international institutions that could finance such deals.
Why the issue is complex
The head of the Ministry of Economy acknowledged that the interest of potential investors is currently limited. According to him, large European companies in the nuclear industry have their own financial and structural difficulties, which complicates the acquisition of a stake in Ukrainian energy assets, especially during the war or immediately after its end.
In addition, the implementation of such an agreement requires a broader political framework.
“This requires a joint agreement that the European Union will agree to,” the minister said.
Focus on domestic resources
At the same time, the government is counting on increased domestic financing. Sobolev stressed that the key areas remain the fight against corruption, the expansion of the legal sector of the economy, and the growth of tax revenues.
According to him, Ukraine currently redistributes about 50% of its gross domestic product, which indicates a high burden on the budget during wartime.
What will not be put up for sale
The minister separately emphasized that the government does not plan to privatize strategic facilities that are critical to the country’s food security. In particular, this refers to key port elevators.
At the same time, according to Sobolev, the private sector is capable of making most other state assets more efficient.
