Mihaylich: 50% of state assets still waiting for investor
In Ukraine there are about 50-55% of state property currently waiting for investors and efficient owners.
Roman Mihaylich, expert on restructuring the state ownership, NGO “Committee of assistance for fighting Economic And Corruption-Related Crime” expressed this opinion during the conference “Future economic development of Ukraine in the context of the integration processes” in Kiev.
"Analysis of the state ownership from 1991 to the present day shows that, considering the recommendations of IMF experts, Ukraine has lost a number of industries. This includes agro-industrial complex, the military-industrial complex, agricultural machinery, etc. What does Ukraine have today? There is still about 50-55% of state property currently waiting for investors and efficient owners,” noted Mihaylich.
However, there are certain issues – objective and subjective – that block the State Property Fund from implementing these processes, said the expert.
"Today, preparation of a company for sale or for private investors requires a series of actions on the registration of state property, due to the reform of real estate registration process. This procedure requires rather serious financial resources for completion, including inventory reconciliation, assessment, and so on. Today, the state has no such resources,” notes Mihaylich.
He also added that the state officials behind the processes associated with the property rights registration do not distinguish private and state ownership.
"Both individuals and legal entities, as well as the public sector, bear the financial costs associated with the registration of property rights. Without addressing this issue, we are unable to get any Western or Eurasian investor," said the expert.