Ukraine doubles privatization proceeds in 2019, fails to meet plan

Ukraine’s State Property Fund reported on Jan. 2 that
it raised UAH 537 mln in proceeds from privatizations in 2019, according to
epravda.com.ua news reports. This is twice more than in 2018, but still
significantly short of the plan envisioned in the state budget (for UAH 17.1 bln).
All the privatization proceeds came from so-called small privatizations (the
sale of small state assets via electronic auctions), with no large asset having
been offered during the year.

Privatization proceeds were planned to finance the
state budget deficit, which should have been UAH 91.1 bln in 2019, according to
the law. The actual budget deficit reached UAH 72.4 bln, or UAH 18.7 bln short
of plan.

Alexander Paraschiy: In the absence of large privatization assets offered, the 2019
proceeds look solid, being the second-best result in the last six years.
Without offering large assets, there is no chance for meeting the ambitious
privatization targets set in the budget. The 2020 privatization plan, which is
UAH 12.0 bln, is easily achievable in case the government completes the
privatization of five large companies that it initiated back in 2018. If so,
2020 could become the second-best in terms of privatization proceeds in
Ukraine’s history. So far, however, the chances for meeting the 2020 privatization
target look less than 50%.