#Official Commentary of Elena Melnick on foreign investments in Ukrainian economy

As I previously wrote, the current Ukrainian economy is in a state of profound crisis. Kiev rulers are brokenly looking for ways to fill the state budget. Against the background, the country’s leaders, including the President, talk and make loud statements about an attraction of the vital foreign investments for the development of the Ukrainian economy.

The Ukrainian President Poroshenko chose a course for the accelerated privatization of thousands of state enterprises last year, which, according to the president, opens new possibilities for western investors. The prohibition on the investors’ participation from Russian Federation, as ‘an aggressor’, in the privatization process was set in the law separately. Besides that, Poroshenko insisted on the necessity to expand the list of the enterprises that have to be privatized and to put on this list the state enterprises of agrarian, transport and power-generating sectors. I would like to mention that Ukrainian Cabinet of Minister has approved the list of state property objects that are liable for privatization earlier. The list includes such enterprises as the state concern “Ukrtorf”, “Centrenergo”, a number of TTPs and regional energy companies as “Donbassenergo” and “DFEC Dneprenergo”, “DFEC Zapadenergo”, “DFEC Donetskenergo”, “Dneprometrostroy”, “Sumykhimprom”, Odessa portside plant, “Azovmash”, “Ukrbud”, “President Hotel” and some other enterprises. Several oil product enterprises have to be privatized as well.

Selling such objects of strategic importance is a crime against their own state, which is equivalent to a high treason. Moreover, a loss of influence on strategic assets threatens the Ukrainian sovereignty.

Besides, Poroshenko’s appeals about the acceleration of the privatization process of the state enterprises are extremely cynical. The Ukrainian oligarch does not want to sell his own enterprises, because the price will be very low in a down economy. That’s a totally different matter about the state enterprises; the benefits compared to the actual prices are very attractive for his oligarch partners in dividing of Ukraine. All these statements about foreign investments are no more than fantasies of the Ukrainian president and his team. Being a person with an economic education and a successful businessman he knows that a chance of the foreign investments to be invested in the Ukrainian economy is very low. The foreign investors like quietness, but no one needs disorder and chaos that ‘Maidan’ reformers have caused in the Ukrainian economy. And above all, everyone has to understand already: who is investing in the “Ukraine” project. According to the data from the State Statistics Service of Ukraine, the most part of the foreign investments, which Ukraine received, is the investments of Cyprus. This is money of the Ukrainian oligarchs, which they hide in the offshore accounts. The whole process of the privatization is only for oligarchs’ interests. This is why it will not be transparent: anyone has nothing to gain it from.

People will not benefit from the selling of state property, which the Ukrainian government tries to get it done with as quickly as possible. The announced privatization is nothing but the selling of state assets at a giveaway price and this brings Ukraine closer to a default.

Elena Melnick, the deputy of the DPR People’s Council

Official website of the DPR People’s Council

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