Aivaras Abromavicius: Odessa Port Plant should be privatized on principles of transparency and taking into account public interests

Odessa port plant (OPP) is among those in line for priority privatization, so it draws public attention. Professional counselors will help to prepare the enterprise for sale and evaluate its cost. This was stated by Minister of Economic Development and Trade of Ukraine Aivaras Abromavicius during a working visit to Odessa region.

"The two companies on top of the list, that is, Centrenergo and the Odessa Port Plant, should only be sold to strategic foreign investors. Privatization is a part of the public sector reform, which will reduce intervention of the state, will attract private investment in the development of enterprises and increase tax revenues to the state budget," said Aivaras Abromavicius.

The Minister of Economic Development and Trade of Ukraine noted that transparent and competitive privatization would promote building of long term and open relations with business, including foreign investors. All potential investors should have equal access to information about the enterprise to be able to assess properly its investment attractiveness. The Government, in turn, will have a number of requirements to future owners of the company, which concern preserving of the enterprise’s activity, environmental and social factors.

In 2014, overall sum transferred to the budget of Ukraine by 30 largest public companies, including Odessa Port Plant, made up 1.2 billion hryvnias as dividends. However, they received from the state budget over UAH 13 billion as grants and tax benefits, and incurred losses worth UAH 100 billion. Privatization of state enterprises will enable reduction of expenses for subsidies and tax incentives, drawing more foreign direct investment, overcoming corruption schemes in the public sector and creating equal conditions for all participants of the market.