Facebook Pixel

Two-thirds of Ukrainian state-owned enterprises incur losses

Author
Out of 3,400 state-owned enterprises, only one in three generates profit. Photo: Pixabay

Out of 3,400 state-owned enterprises, only one in three generates profit. Photo: Pixabay

In 2020, out of 3б343 state-owned enterprises in Ukraine only 947 generated at least some profit to the state budget. The rest, at best, broke even, but more often incurred losses, the Ministry of Economy reported.

Of the total number of enterprises, only 1,458 (43%) operate, and only 28% (947 enterprises) generate profit.

The proprietors of state-owned enterprises in Ukraine are 87 management entities. The total assets of all 3,400 state-owned enterprises amount to 1.7 trillion UAH with a staff of 715,000 employees. The gross loss from the activities of state-owned enterprises in 2020 amounted to 51 billion UAH.

According to the analysis by Economichna Pravda (Economic Truth from Ukrainian), the Ministry of Economy published data for management entities, and not for enterprises. In addition, the Ministry did not publish complete data on balance sheet items, profit and loss statements, or cash flow statements. Therefore, it is not possible to calculate standard coefficients for the enterprises portfolios: return on equity, liquidity and coefficients for individual enterprises, analysts summed up.

Context. The state planned to put a significant part of state-owned enterprises on a large privatization that the government wanted to carry out back in 2020. However, the plans were thwarted by the pandemic. First, the SPFU suspended the placement of entities, and then the Rada postponed the privatization until the end of the quarantine. Only after a long time, already in March 2021, the Verkhovna Rada relevant committee supported the bill to unblock privatization. The large privatization was scheduled for the summer of 2021.

Comments

Also on topic

All News