According to the information published on the official web-site of the Ministry of Agrarian Policy of Ukraine, the Ministry of Agrarian Policy and Food of Ukraine, the State Property Fund of Ukraine and the Fund for Innovations and Development (the Republic of Georgia) establish a joint working group and launch a pilot project for the privatization of State-owned agricultural enterprises.
10 State-owned enterprises active in the field of crop production, livestock and horse breeding, as well as in research and processing industry have been selected to participate in the project. One of them – Agricultural Enterprise “Trest” – has completed the pre-privatization preparations and by the Ministry’s order has been transferred to the management of the regional branch of the State Property Fund at Chernihiv Region. The work with regard to the other nine State-owned enterprises will be completed in the nearest future.
The list of State-owned enterprises taking part in the pilot privatization project is as follows:
- State Enterprise “Agricultural Enterprise Trest”, Chernihiv region. Specialization — growing grain, legume crops and seeds, breeding cattle and pigs.
- State Enterprise State Farm “Vynogradna Dolyna,” Mykolaiv region. Specialization — plant growing, growing and processing grapes, breeding pigs.
- State Enterprise “Cherkassy Canning Plant”, Cherkassy region. Specialization — processing agricultural products.
- State Enterprise “Iskra,” Kharkiv region. Specialization — crop growing and livestock breeding.
- State Enterprise “Scientific and Research Farm Ukraine,” Zhytomyr region. Specialization — scientific and teaching activities, production, processing and marketing of agricultural products.
- State Enterprise “Myrogoschansky State Hippodrome,” Rivne region. Specialization — horse breeding.
- State Enterprise “Trading House Bukovynska Horilka,” Chernivtsi region. Specialization — wholesale trade in beverages.
- State Enterprise “Kryvorizke Rayagropromenergo” Dnipropetriovsk region. Specialization — repair and maintenance of electrical equipment.
- State Enterprise “Kirovohrad Specialized Seed Control Laboratory for Sugar Beet,” Kirovograd region. Specialization — crop production, wholesale and retail trade.
- State Enterprise “Project Institute Promzernoproekt,” Kyiv. Specialization — engineering, geology and geodesy.
A total of 571 state-owned enterprises are subordinated to the Ministry of Agrarian Policy. Only 96 of them are operating officially, and 20 of them are profitable. 154 state-owned enterprises are bankrupt or are in the process of liquidation. 100 companies’ value is less than 100 000 UAH. At the same time, 177 State-owned agrarian companies are prohibited from privatizing, 18 of them being located on the territory of Crimea. The Ministry initiated the privatization of inefficient assets, also by means of land plots rearrangement for the purpose production revival and investment attraction into the agrarian industry.
Oleksiy Pavlenko, the Minister of Agrarian Policy and Food of Ukraine, stated that the ministry will initiate privatization of 254 additional enterprises. 101 of them are planned to be privatized through land plots rearrangement, and 158 others will be subject to further privatization. Maximum 10 enterprises will be left on the balance books of the ministry.