: :inin Kyiv (EET)

Economy ministry hopes for UAH 13 bln in dividends from state companies in 2017

Ukraine`s Ministry for Economic Development and Trade expects that state companies and joint-stock companies, whose controlling stakes belong to the state, will pay about UAH 13 billion (about $520 million) in dividends in 2017.
”According to the Economy Ministry`s estimates, state-owned joint-stock companies alone will transfer UAH 13 billion in dividends to the budget next year. This is good news,” First Deputy Economy Minister Yulia Kovaliv wrote on Facebook.
”These are 94 joint-stock companies where the state owns controlling stakes. In keeping with the financial plans we`ve worked on, an expected profit from these enterprises will be UAH 18 billion ($720 million),” she wrote.
Kovaliv said that these dividends are large, but they are smaller than possible tax payments by most state-run enterprises if they operated in the private sector.
In this connection, Kovaliv said, the privatization of state companies that are not designated as strategically important would help improve the situation, both in management and by increasing working capital.
”Part of the profit [75%] that is channeled in favor of the state is rather large. And very often in such cases, companies don`t have free funds they can invest in the development of business, and thus increase their revenues, expanding production, boost export potentials, create new jobs and do many other things. The transparent privatization of all non-strategic enterprises would be a good solution to this situation,” Kovaliv said.
As UNIAN reported earlier, the reform of the state sector of the economy, in part through management reshuffling and preparations for privatization of non-strategic enterprises, is a priority of the government.
Until the end of the current year, the economy ministry plans to appoint independent supervisory boards at 15 of the largest Ukrainian state companies.


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