How privatization drives investment into the economy: the government’s response.

The privatization of state-owned enterprises allows the state not only to receive one-time income from sales but also acts to attract investment to develop these enterprises. Thus, for every ₴1 received from privatization, there are ₴4 invested into the economy, said Deputy Minister of Economy Oleksiy Sobolev.

“Economic growth is the main goal of privatization. A new owner comes to an abandoned production facility and invests resources in its renovation. There is money spent for the development of the facility as well as the creation of new jobs,” he emphasized.

According to him, privatization is also important during the war because it allows the state to profit from selling non-strategic objects instead of spending resources on their preservation. Money from privatization goes to the state budget, and businesses get opportunities for development and growth.

In the second half of the year, Ukraine is launching large-scale privatization. One of the biggest lots for sale is the iconic hotel in the center of Kyiv, Hotel Ukraina with a starting price of ₴1.05B ($26M).