Significant issues with the efficiency of state property management persist in Ukraine’s public sector. According to the financial committee of parliament, the level of losses among state enterprises is nearly double the national average, indicating deep systemic difficulties in this segment’s operations.
This is reported by Business • Media
Insufficient Efficiency and Rising Debts
As of the beginning of 2025, 72.1% of enterprises under state control are either not engaged in operational activities or are so-called phantom enterprises. This means that most state companies are effectively providing no benefit to the budget and the economy of Ukraine. Additionally, nearly 70% of these enterprises entered the new financial year without approved financial plans, complicating oversight of their activities and resource allocation.
Despite achieving a significant surplus in privatization revenue in 2024—nearly 10 billion hryvnias were received by the state budget, which is 247% of the planned amount—most other indicators remain negative.
Dividend Payments and Rent Fees Decrease
Among enterprises with a state share of over 50%, only 7% paid dividends, indicating low profitability of state business. Meanwhile, last year, state enterprises managed by the State Property Fund of Ukraine (SPFU) recorded a 14% increase in wage arrears, amounting to 685.5 million hryvnias.
Another issue has been the 33% decrease in the average rental value of state property. The total debt of tenants to the state budget exceeds 409 million hryvnias, with about 15% of this amount already considered irrecoverable.
“The level of losses in the public sector is nearly 100% higher than the national average, and 72.1% of state-controlled enterprises are either not functioning or are entirely phantom enterprises.”
Most companies under the management of the SPFU report losses, with the total amount reaching 6.45 billion hryvnias. Experts emphasize the need to reform approaches to managing state property to enhance its efficiency and reduce financial losses for the budget.