Privatization of Ukraine’s alcohol industry brought about UAH 2 billion

The State Property Fund (SPFU) has announced demonopolization of Ukraine’s alcohol industry. According to the SPF press service, 30 alcohol companies have been privatized for more than 1.7 billion hryvnias since October 2020 at the auctions.

It is noted that UAH 1.05 billion has already been paid by investors to the state budget, and another UAH 37 million – received as a penalty and guarantee fees for rejecting the auction results.

“A year ago, Ukraine and Belarus were the only countries in the world with state monopolies on alcohol production and their characteristic features were secrecy, unfair pricing, corruption, abuse, criminal cases and a huge shadow alcohol market,” the Fund said.

By the end of this year, three auctions for the privatization of alcohol assets are to take place: Uzlovsky in Lviv region, Trostianetsky and Uladivsky plants in Vinnytsia region.

According to SPF Chairman Dmytro Sennychenko, the privatization of Ukrspirt’s distilleries and Ukrspirt concern is expected to bring about UAH 2 billion, while in 2020 the sale of assets at 20 auctions amounted to UAH 1.26 billion.

We will remind you that

• On December 11, 2019, President Volodymyr Zelensky signed a law abolishing the state monopoly on alcohol production. On July 1, 2020, the law on liberalization of alcohol production and circulation came into force – Ukrspirt lost its status of a monopoly producer of alcohol.
• The expected revenues to the state budget from the privatization of all distilleries of state-owned enterprises Ukrspirt will amount to about UAH 2.5 billion.

Ukraine Front Lines

Source: biz.liga.net

Tags: Business Ukraine