Yatsenyuk: From privatization of state property the country should get funds to the budget and a real investor
OREANDA-NEWS. August 21, 2015. To get the maximum funds to the state budget and a real investor into each privatization object is what the country should get from privatization of state-owned property. Prime Minister of Ukraine Arseniy Yatsenyuk said during the Cabinet’s meeting.
The Head of Government reminded that the current legislation, which has been in effect for two decades, envisages for the sale of 5% of the shares on the stock exchange. "Having the complete underdevelopment of the Ukrainian stock market, a sale of 5% on the stock exchange means only one thing – a real investor won’t come, but guys having the old oligarchic ties will prevent us from holding public and transparent privatization," the Premier stressed.
Arseniy Yatsenyuk noted that now there is a dilemma with the Odessa Port Plant: to offer the OPP package rapidly and lose value or "to hire a worldwide recognized company to prepare the object to privatization, to conduct a public auction and sell the OPP, like other state property objects including the Centrenergo company, through the transparent public auction, like the one we had for Kryvorizhstal, to attract the most funds into the state budget from privatization of state-owned property and to get a real institutional investor into each privatization object".
"I can't afford this object losing the value", stressed the Prime Minister. "And the second, I cannot afford the old rules of the game in the privatization process for the state property objects", he added. He noted that in order to make it easier to sell the state-owned facility, "we have to follow high standard of privatization and attract a powerful investor. To help the State Property Fund to receive a real investor, we need strong investment managers and consultants who will facilitate us to attract investors and to take for this object the sum more than 500 million dollars, which is its starting price evaluated".
The Prime Minister offered to change the estimation methods. He immediately instructed to submit for consideration of the Cabinet of Ministers the estimation procedure for state property objects, which should form the initial market value of the object. Moreover, Arseniy Yatsenyuk stressed the need to submit amendments to Parliament in laws on privatisation and evaluation activities. Following a procedure of selecting a privatization consultant, key state-owned objects will be sold at transparent public auction. "We will have revenues to the budget - first, second – we have an investor and the third – we get a social package for employees of a particular privatized enterprise. Here are our three tasks", accentuated the Prime Minister.
Now we have on the agenda an ambitious and transparent privatization program, said the Head of Government. "This is possible only under the conditions that the privatization is carried out in compliance with the highest standards of investment attractiveness, transparency, drawing real investors and higher real value for the privatization objects", summed up the Prime Minister.