Ukraine plans to liquidate 1,278 state-owned enterprises.

The State Property Fund (SPFU), which currently manages 2,364 state-owned enterprises, made the decision. The department claims that 82% of state enterprises are unproductive, exist only on paper, and have millions of accumulated debts. The fund plans to liquidate 347 enterprises this year, 400 in 2024, and another 141 in 2025. Liquidation can take from four months to 1.5 years.

The SPFU also prepared a draft law to make the liquidation procedure self-supporting and provide an opportunity to repay these enterprises’ debts. It is noted that liquidating non-working assets will reduce the budget’s debt burden, compensate employees for accumulated debts, create new businesses using the property of unprofitable enterprises, and improve and develop the Ukrainian economy.

By the end of 2023, the fund plans to manage about 1,200 more state-owned enterprises. At the same time, 82% of the SPFU’s portfolio cannot be privatized: 664 are in temporarily occupied territories, 1,278 have been liquidated through bankruptcy, and 134 will remain under the fund’s management.