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10 December, 2020
Ukroboronprom's SOEs: First Wave of Privatization Launched
This is Ivano-Frankivsk Boiler and Welding Plant. This state-owned enterprise has a tax debt of almost 9.5 million UAH. On the 9th of December, the Cabinet of Ministers decided to transfer this and 15 other enterprises of the State Concern Ukroboronprom to the State Property Fund of Ukraine for further privatization. SPFU (State Property Fund of Ukraine) also received corporate rights of the two joint-stock companies - OJSC Plant Kvant and PJSC Kherson Plant Sudmash, and another enterprise will be placed under the Ministry of Defence of Ukraine.
Why?
Ukroboronprom had 137 enterprises, 116 of which are located in the territory controlled by Ukraine. Last year, these 116 enterprises underwent a comprehensive assessment of their real condition - triage analysis. As a result, only 33 enterprises were considered financially stable. As for other enterprises, the concern has developed plans for reorganization and reassignment. The enterprises transferred for privatization did not function as components of the military-industrial complex of Ukraine for a long time did not fulfil the state defence order and did not produce anything: out of 16 alienated enterprises 5 were loss-making, and another 11 did not carry out financial and economic activities. In addition, in the first half of 2020 alone, their aggregate financial indicators were unsatisfactory - 15 million UAH in losses and more than 7 million UAH in debt. 
At the same time, the total value of their assets is 280 million UAH. Thus, the alienation of these enterprises created conditions for more efficient use of their property and allowed Ukroboronprom to unload and concentrate its efforts on reforming other enterprises of the Concern. In total, more than 30 non-viable enterprises will be transferred to the State Property Fund.  According to the Concern, 16 more enterprises are currently being prepared for the alienation.