The head of the Ukrainian Sovereign Fund, Dmytro Sinchenko, has called on Turkish investors to enter his country’s market by participating in the largest privatization process it will witness since the dissolution of the Soviet Union in 1992.
Sinchenko said that there are 3,600 governmental institutions in many fields, including real estate, agriculture and the production of inherited industrial machinery.
And from the period of the Soviet Union in Ukraine, most of them are included in the list of privatizations, with the exception of some strategic enterprises.
He added that Ukraine has opened its doors to investment, and invites Turkish investors to enter by participating in the largest privatizations that the country will witness, and to strengthen economic relations between the two countries.
He explained that the Ukrainian Sovereign Fund is in charge of regulating privatization activities in the country.
He stated that the government wants to reduce the state’s presence in the economy and attract investors, especially Turkish businessmen who are already active in Ukraine, especially in the areas of infrastructure and communications.
Commitment to bid transparency
The Ukrainian official expressed his hope to see the contributions of Turkish investors in the privatization projects in his country, stressing that the process will be through transparent bidding.
He said that entrepreneurs can access information about privatization initiatives through the relevant official websites.
He reported that the Ukrainian sovereign fund had already signed 1,900 contracts in 2020, and earned the fund a revenue of 3 billion Ukrainian hryvnia ($ 108 million).
Tender revenues last year were equal to more than 4 times the amount achieved in 2019, despite the effects of the Corona pandemic on the global economy.
Searching for competent investors
Sinchenko said that his country had temporarily suspended work on major privatization projects due to the pandemic last year.
Due to concerns that there may be negative impacts on the market value before these projects reopen in April 2021.
As for the projects that the sovereign fund intends to put up for tenders, Sinchenko said:
“We are currently working on drafting a tender for the largest facility and mine in Europe for the production of titanium, and it will be ready for launch in mid-summer.”
According to Sinchenko, the Ukrainian Fund also intends to issue a tender for a facility to build machines and machines.
It has an area of 35 hectares in the center of the capital, Kiev. “The tender will be ready at the end of the summer of this year,” he said.
Among the projects that will be included in the privatization is the 4-star “President” hotel and 374 tender rooms.
Senchenko said that the fund signed a contract last year to privatize the Dnipro Hotel, which is located on one of Kiev’s busiest streets.
And in return for one billion and 100 million hryvnia (40 million dollars) through a tender in which 21 investors participated.
Looking forward to Turkish experiences
Sinchenko also expressed his country’s aspiration to benefit from Turkish expertise, especially in the field of developing industrial zones.
He stressed that “Turkey has made an important progress in developing industrial zones and activities.”
On the other hand, Sinchenko said that his country provides large production in the field of agriculture, “where investors can buy Ukrainian agricultural products, process them, sell them on the local market or export them.”
A gateway to the European market
The head of the Ukrainian Sovereign Fund considered that his country “is almost the only country in Europe that has not yet completed direct privatization activities.”
“We have an important opportunity to complete the privatization process, especially since Ukraine signed a free trade agreement with the European Union,” he added.
Under which the materials produced in the country can be easily sold to the Union. “
“However, we are undertaking reforms to provide an attractive environment for entrepreneurs,” he added.