Ukraine plans to auction state-owned companies to fund military, boost economy

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Ukraine News

Russia,Economy

Many of these state-owned enterprises are costing the government millions of dollars to run or maintain.

In 2023, the Ukrainian state won a court case to wrest Ocean Plaza, one of the largest shopping malls in Kyiv, away from Russian control. It was until recently owned by Russian oligarchs.KYIV: The Ukrainian government is planning to auction off about 20 state-owned companies as part of a privatisation drive to help fund the military and bolster a war-battered economy.

Ukraine has more than 3,000 of these entities, but only 15 per cent of them are generating profits. Many are costing the state millions of dollars to run or maintain.One of the properties that will be put up for sale will be Kyiv’s Hotel Ukraine, which has witnessed important moments in the nation’s history since it opened in 1961.This comes as increasing revenue streams for Ukraine’s war-ravaged economy becomes an urgent task.

Kyiv has had to look to foreign financial support to pay for its humanitarian and social expenses. Now, it is increasingly examining its domestic options. “They do not go to the State Property Fund or any other institution, but directly to the state budget. The funds will then be used to eliminate the consequences of Russia’s armed aggression.”

 

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