Dmytro Sennychenko: The State Property Fund has identified a number of unprofitable non-core state assets that need to be transferred to privatization
The Chairman of the State Property Fund stated in his blog on “Ukrainska Pravda” that the audit conducted by the State Property Fund revealed a number of state objects subordinated to various state bodies. These objects are in a loss-making or close to loss-making state and are not profile for the implementation of public administration.
According to him, the State Property Fund is ready to undertake to find an effective investor for these objects and turn them from unprofitable to profitable.
“During 2020 our team work has proved that such a task is possible for us, and the SPFU tends to overfulfill its commitments,” said Dmytro Sennychenko.
The Chairman of the Fund gave several examples of objects, the inclusion of which in the list of privatization will provide a positive effect at all levels: from the key effect in the form of increasing the revenue to the state budget and final effect on the local levet, where investment will contribute to infrastructure development and job creation:
Hotel “Moriak” on the balance of the Sea Commercial Port “Chornomorsk”. Despite the large area - about 7 thousand sq. m. and a great location near the city beach, this company has not been operating since April 2020.
The house with a tower with an area of 4,920 sq. m. in the center of Chernivtsi city. Owner - Main Department of the Pension Fund in Chernivtsi region. The house is located at the beginning of a tourist pedestrian street and would be more suitable for a hotel with large prices, rather than for the place of officials.
Hotel “Vlasta” in Lviv, Hotel “Bratislava” in Kryvyi Rih and Hotel “Kozatskyi” in the heart of the capital are all owned by the Ministry of Defense through various structures. Objects are very different in style, amount of stars and area, but they are all - steadily unprofitable for at least the last four years. As of November 1, 2020, the tax debt of the Hotel “Kozatskyi” is UAH 1.7 million, the state debt is UAH 0.97 million, and the local debt is UAH 0.7 million.
The building with an area of 1,500 sq. m. located at 9, Lev Tolstoy St. in Kyiv city (in the heart of the capital), which is formally owned by the Ministry of Health, are idle, but is not used by the Ministry. The situation is the same with the complex of buildings on almost 4,000 sq. m. near the Olympic Stadium, which is owned but not used by the Ministry of Youth and Sports.
The SFS has its own recreational center near Lviv city – “Charivni Ozera” in Maidan village and recreation center “Sosnovyi Bir” in Vorzel small town. The first mentioned object is unprofitable, and the second is not used by the SFS. Meanwhile, the size of the land plot under base “Sosnovyi Bir” is 8.7 ha. The income of the center "“Charivni Ozera” - about UAH 15 thousand per year.
“The State Property Fund sees the possibility of a breakthrough for the Ukrainian economy behind outdated sanatoriums, emergency facades in the city center, real estate that is not used by state bodies. Privatization is a way to turn the current property ballast into a locomotive of economic development for settlements, oblasts and the country as a whole,” said Dmytro Sennychenko, Chairman of the State Property Fund.