The State Property Fund of Ukraine plans to put eight distilleries up for privatization within the next two months, with a total value of about 250 million hryvnias. This initiative is part of a large-scale reform aimed at breaking the monopoly in the alcohol market, combating shadow schemes, and attracting investment to the industry.
This is reported by Business • Media
Privatization of the Alcohol Industry: Progress and Prospects
The process of privatizing enterprises in this sector began back in the fall of 2020. At that time, there were 78 state-owned distilleries operating in Ukraine, of which 41 belonged to the state enterprise “Ukrspyrt” and 37 enterprises of the same name were being prepared for sale. Currently, the SPFU is trying to sell the Zarubynsky distillery for 77.9 million hryvnias, which is half of the starting price. The Borchiv distillery and storage facility (13.8 million hryvnias) and the Kholmin distillery have also been proposed for privatization, while the Uladivsky distillery and the Korostyshiv distillery are soon to be prepared for sale.
Issues with Odesa Port Plant Privatization and Government Initiatives
At the same time, the attempt to privatize the Odesa Port Plant (OPZ) at an initial price of 4.49 billion hryvnias ended unsuccessfully due to a lack of interested investors. The State Property Fund explains this by the complex conditions of privatization: the enterprise requires significant investments, special expertise, and commitments to maintain key areas of activity, invest at least 500 million hryvnias in modernization and development, as well as settle over 366.8 million hryvnias in salary and budget debts within a year.
“The lack of demand at the outset may indicate that the initial price exceeds the market value in conjunction with other financial obligations,” the SPFU explained.
After the auction’s failure, the Ministry of Economy supported a draft law that allows for a phased reduction of the starting price for large privatization objects. This is intended to help avoid situations where assets remain overlooked by potential investors due to inflated starting prices and financial burdens. The ministry emphasized that the key task of the state is to preserve the enterprise, ensure its further development, and attract a strategic investor for the modernization of OPZ and the restoration of production capacities.