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Joint working group launches pilot project for the privatization of State-owned agricultural enterprises 26 June 2015
Fri, June 26, 2015
According to the information published on theofficial web-site of the Ministry of Agrarian Policy ofUkraine, the Ministry of AgrarianPolicy and Food of Ukraine, the State Property Fund of Ukraine and the Fund forInnovations and Development (the Republic of Georgia) establish a joint workinggroup and launch a pilot project for the privatization of State-ownedagricultural enterprises.
10 State-owned enterprises active in the field ofcrop production, livestock and horse breeding, as well as in research andprocessing industry have been selected to participate in the project. One ofthem – Agricultural Enterprise “Trest” – has completed the pre-privatizationpreparations and by the Ministry’s order has been transferred to the managementof the regional branch of the State Property Fund at Chernihiv Region. The workwith regard to the other nine State-owned enterprises will be completed in thenearest future.
The list of State-owned enterprises taking part inthe pilot privatization project is as follows:
1. State Enterprise“Agricultural Enterprise Trest”, Chernihiv region. Specialization — growinggrain, legume crops and seeds, breeding cattle and pigs.
2. State Enterprise StateFarm “Vynogradna Dolyna,” Mykolaiv region. Specialization — plant growing,growing and processing grapes, breeding pigs.
3. State Enterprise“Cherkassy Canning Plant”, Cherkassy region. Specialization — processingagricultural products.
4. State Enterprise “Iskra,”Kharkiv region. Specialization — crop growing and livestock breeding.
5. State Enterprise“Scientific and Research Farm Ukraine,” Zhytomyr region. Specialization —scientific and teaching activities, production, processing and marketing ofagricultural products.
6. State Enterprise“Myrogoschansky State Hippodrome,” Rivne region. Specialization — horsebreeding.
7. State Enterprise “TradingHouse Bukovynska Horilka,” Chernivtsi region. Specialization — wholesale tradein beverages.
8. State Enterprise“Kryvorizke Rayagropromenergo” Dnipropetriovsk region. Specialization — repairand maintenance of electrical equipment.
9. State Enterprise“Kirovohrad Specialized Seed Control Laboratory for Sugar Beet,” Kirovogradregion. Specialization — crop production, wholesale and retail trade.
10. State Enterprise “ProjectInstitute Promzernoproekt,” Kyiv. Specialization — engineering, geology andgeodesy.
A total of 571 state-owned enterprises aresubordinated to the Ministry of Agrarian Policy. Only 96 of them are operatingofficially, and 20 of them are profitable. 154 state-owned enterprises arebankrupt or are in the process of liquidation. 100 companies’ value is lessthan 100 000 UAH. At the same time, 177 State-owned agrarian companies areprohibited from privatizing, 18 of them being located on the territory ofCrimea. The Ministry initiated the privatization of inefficient assets, also bymeans of land plots rearrangement for the purpose production revival andinvestment attraction into the agrarian industry.
Oleksiy Pavlenko, the Minister of Agrarian Policyand Food of Ukraine, stated that the ministry will initiate privatization of254 additional enterprises. 101 of them are planned to be privatized throughland plots rearrangement, and 158 others will be subject to further privatization.Maximum 10 enterprises will be left on the balance books of the ministry.
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