Euromaidan Press

News and Opinion from Ukraine and Europe on Military and Political Developments.

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Ukraine eyes a second Big Privatiation of state enterprises.

During the last 30 years, left from the Soviet Union state enterprises turned into a big burden for the taxpayers. 46% of them don’t generate revenue and thus drain the state budget. Some of them, rather make oligarchs profit. Actually, oligarchs were born as a class during the process of privatization in 1991, with Ukraine’s declaration of Independence. The enterprises which were left in the state’s property as well turned to the feeders of oligarchs who plunder them through corrupt schemes involving loyal state servants. This spring, Ukraine again launched a big privatization of state enterprises. However, this time, the oligarchs’ interest is not so much buying state assets, but preventing the transparency of the process and even blocking it. However, if the process is held through real transparent procedures, privatization is completed successfully, and private investors develop the enterprises they buy Ukraine will receive a major boost.

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