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Ukrzaliznytsia plans to attract UAH 500 mln from sale of noncore assets by late 2021
KYIV. Sept 21 (Interfax-Ukraine) – JSC Ukrzaliznytsia plans to sell noncore assets for UAH 500 million by the end of this year.
"We are starting our little history of privatization inside Ukrzaliznytsia… Thanks to the support of the Supervisory Board, we have defended our strategy for noncore assets over the past two weeks. We have a whole bunch of properties all over Ukraine that need to be sold… We are starting with small steps, we have agreed on more than 400 facilities for sale. And we plan to receive UAH 500 million from the sale of these facilities by the end of the year. This is our small privatization, which we want to start in Ukrzaliznytsia," Ukrzaliznytsia Head Oleksandr Kamyshin said at the conference "Reform of state-owned companies as an impetus to the development of competitive markets" held in Kyiv on Tuesday.
According to him, most of the facilities prepared for privatization are old buildings that Ukrzaliznytsia does not need, but under them there is land that is of interest to developers.
"I believe that it is necessary to sell such facilities and invest in infrastructure, railways and locomotives," Kamyshin said.
He said that Ukrzaliznytsia also has large facilities that the company should sell. "For example, a large operator of container platforms. These are container terminals throughout the country. Today, it is practically a monopoly in the field of container railway platforms. And this company today is in a state approximately like Ukrposhta was many years ago, when you are a major player and small players are just emerging nearby. In my understanding, if we are not able to sell this company on time or to let a large private system investor into it, then this company will go the way of Ukrposhta. When a private business appears next to it, it will take years and it will become stronger and more effective, and we will lose this war," Kamyshin said.
He said that it is better to sell such assets when they occupy a monopoly position in the market, and not wait until the last moment when private business will win, because of which the asset will significantly lose value.
