<\/p>\n
Dmytro Sennychenko, Chairman of the State Property Fund of Ukraine, shared such expectations during a meeting with the EBA business community on March 24.<\/p>\n
The full launch of large-scale privatization<\/strong> is one of the Fund’s priorities for 2021. The Verkhovna Rada may soon pass a government draft law that will lift a ban on the privatization of large objects. This restriction was introduced last March in connection with quarantine. After the long-awaited unblocking, the SPFU will first initiate the privatization auction for JSC United Mining and Chemical Company, PJSC President Hotel, the Bolshevik plant, and the last six state-owned regional power distribution companies.<\/p>\n Among other priorities for this year, the Fund noted reforming property valuation and lease<\/strong>. Thus, the SPFU has developed a draft law “On Amendments to the Legislation on Property Valuation and Professional Valuation Activities in Ukraine”, which aims to bring the Ukrainian valuation system in line with international standards.<\/p>\n Besides, the reform provides for the elimination of the “factional” valuation<\/strong> of real estate. Mr. Sennychenko emphasized that Ukraine may be left the only country in the world with such a valuation practice when the value of the real estate is determined as the sum of its physical components: of the land and land improvements (buildings, facilities located on the land). According to him, the modernized valuation system will ensure the transparency of state registers and update them with relevant information which is necessary for the state and investors to make decisions in the context of property privatization. The SPFU hopes that the reform of the valuation industry will be completed in 2023.<\/p>\n During the meeting, the Fund shared statistics on the results of its activities last year<\/strong>. Thus, in 2020, 420 objects were transferred to the SPFU for privatization. In 2020, privatization brought 6 times more revenue to the budget than in 2019. Besides, the number of participants in privatization auctions has doubled during this period. In the year since its inception, the Sustainable Investments Office has processed more than 300 inquiries from investors regarding 107 state-owned enterprises. Of the 206 potential applicants to the Office, 72 are foreign investors from 28 different countries.<\/p>\n