#Official Commentary of Miroslav Rudenko on what lies behind requirements of Ukrainian Premier to accelerate adoption of laws on privatization

On August 29, 2016, during the meeting of the National Reform Council under the chairmanship of the President of Ukraine Petro Poroshenko, Ukraine’s Prime Minister Vladimir Groisman urged deputies of the Verkhovna Rada to adopt the necessary legislation for the continuation of intensive privatization of state enterprises.

The process of privatization of the state economic sector is more accurately can be called plundering of national property balances. All assets that are still able to bring at least some minimal profit are rushed to be snatched control of. And those companies that now do not have Russian markets, but remained with liquid fixed assets, are in a hurry to be sold piecemeal. However, this process has its pitfalls. Groisman called state property a source of personal enrichment and corruption. Of course, he meant the oligarchs from the other clans, who shamelessly unwilling to give the enterprises that are under their control on sale under the guidance of Groisman and Poroshenko.

With seemingly profitable asset there are a lot of problems, such as the Odessa Portside Plant (OPP). The situation is running high around this enterprise. Chairman of the Supervisory Board of the OPP, the first deputy chairman of “Naftogaz” Sergey Pereloma and deputy director of the OPP Nikolay Schurikov were arrested in July 2016 on charges of embezzlement of company’s funds. Scheduled for July 26, privatization tender for the sale of 99.6% stake of the OPP did not take place. The competition was delayed till the autumn and the cost of the OPP will be reduced by 30%.

In addition, the Kiev government is making another attempt to privatize the industrial giants of Kharkov. According to First Deputy Minister of Economic Development and Trade Yulia Kovaliv, PJSC “Turboatom” and SE “Electrotyazhmash” have been included to the list of privatization objects. This is despite the fact that these companies, according to the State Service statistics, earned in the first half of 2015 1,294 billion hryvnia and 758 million hryvnia, respectively. PJSC “Turboatom” is secured with orders until 2020 – that’s a worthy example of “mismanagement” and “corruption component”. But the Ukrainian authorities are trying hard to put on the meat all of the chickens that carry the golden eggs for the economy of Ukraine.

Why is the rush? Why Poroshenko and Groisman are in such a hurry? Apparently, the time limit, which was given to them by curators from the West, is coming to an end, and now it is time to put under the knife even those companies that make profit in the dying Ukrainian economy.

Miroslav Rudenko, the DPR People’s Council deputy

Official website of the DPR People’s Council

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