Prozorro Sale

The Cabinet of Ministers of Ukraine has selected three Ukrainian ports that will be sold within the framework of small-scale privatization: Ust-Dunaisk, Belgorod-Dniester and Skadovsk. These are small regional ports that currently require significant investments, but are capable of providing local companies with cheaper logistics in the future. With their help, it will be possible to carry out the transshipment of agricultural crops, fuels, and lubricants, mineral fertilizers, wood, and coal.

At What Stage of Implementation Are the Ports Currently?

All three ports are already included in the list of objects to be privatized. Further, the State Property Fund will begin the process of preparing them for privatization, within the framework of which an inventory will be carried out and the value of assets will be brought in line with accounting. Thereafter, auctions will be announced in Prozorro Sale with full details of the properties.

In 2021, planned to sell at least two of the three ports. Almost all of Ust-Dunaisk's property has been transferred to the port's balance sheet at the moment, so an auction for its sale is planned to be announced at the beginning of the third quarter. A similar situation is with Belgorod-Dniester: the auction will take place approximately at the beginning or in the middle of the third quarter. The Skadovsk port is taking longer to prepare, so its auction is expected to take place towards the end of the year or later.

What Benefits Will the Privatization of Ports Bring to the State?

The transfer to private ownership will allow modernizing the ports, launching them to their full capacity, and creating new jobs. Accordingly, this will increase government revenues and stimulate more active development of local infrastructure.

Based on the results of the privatization of the first three ports, the feasibility of selling the remaining similar objects will be determined. In addition, the SPF will continue to implement other large-scale investment attraction projects through privatization. For example, this summer it is planned to put up for auction the first object of large-scale privatization – the United Mining and Chemical Company.

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