Analytics

Where does the nationalization lead? Ukrainian context

Against the background of recent events, the issue of nationalization of enterprises in Ukraine is currently discussed with enviable activity. Even those citizens for whom this issue is not a subject of personal interest, were involved in some sort of discourse on the advantages and disadvantages of this process. What is the sense of nationalization, and whether is it an effective tool to combat the crisis tendencies in the economy? Editorial office of the analytical business – Publishing Lawyers Daily offers its point of view.

Let’s start from the statistics. The total amount of the sold assets for 25 years in Ukraine is about $ 10.9 billion. At the same time, revenues from privatization of state property, as a rule, do not reach the annual targets for the nationalization implementation. Thus, Privatbank cost the Ukrainian state $ 4.4 billion. And it is only one of the companies that has moved to the state in the course of this year.

In the history of Ukraine’s independence, including the most successful privatizations of formerly nationalized companies – sale of Kryvorizhstal ($ 4.6 billion) and the company Ukrtelecom ($ 1.3 billion ).

It is also worth noting that the Ukrainian practice of nationalization, is mainly focused on the domestic market and the CIS countries. According to statistics, the interest of Western investors in Ukraine is very low.

It is interesting that, despite the public statements by the policy and individual analysts, indicators of the annual plan for the privatization still fall in Ukraine. At that time the nationalization costs are not reduced.

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Also read: Lawyer’s opinion on the nationalization of PrivatBank: what to expect next?

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