Ukraine is planning to centralize state property management.

According to the head of the State Property Fund, Rustem Umerov, the fund is developing plans to centralize the management of state property. It is envisaged to create a sovereign fund, a land bank, and a real estate investment fund.

According to the official, after the creation of the sovereign fund all strategic state-owned enterprises that are not subject to privatization will be transferred from the Cabinet of Ministers to this fund. It will serve as a single tool for the effective long-term management of state-owned companies, including strategic assets that will be developed to generate profit and increase welfare for future generations.

Analysts explain that sovereign wealth funds (SWF) are usually created to manage a country’s reserve liquidity. As for Umerov’s statement, it is probably related to the creation of the National Welfare Fund (NWF). The NWF’s objective is to maximize portfolio value through active management, including developing, restructuring, and monetizing individual assets. The real estate investment fund is created to lease real estate, such as port or infrastructure facilities.