The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Ukraine: Problems and prospects for privatization

Since 2004, privatization in Ukraine has sought to follow an auction system but, as restrictions and requirements are placed on bidders, the winning bid is often poorly contested and so poorly priced. An example of this was seen when Luhanskteplovoz, a monopoly Ukrainian producer of locomotives and trams, was sold in March to a Russian bidder for $60 million in a non-contested auction.

Ukraine takes cautious steps down IPO road

The PFTS and Ukrainian World Bank advisers, among others, are debating the role of privatization in enhancing stock market liquidity. Andrei Kolomiets, head of information and analytics at PFTS, says: "We try to explain to the state property fund [the fund that acts as a holding company for all state companies] and the Rada that the privatization process needs to be altered so that more shares are released onto the exchange to help liquidity and drive investor interest."

By contrast, Martin Raiser at the World Bank says: "The privatization process should have one aim – to find the best investor who will run the company profitably and thus serve the interests of the wider economy. If it is possible to also help the liquidity of the local stock exchange at the same time then all the better but this should not be the focus."

The plans for privatization of Ukrtelecom, the country’s largest fixed-line telecom, look to satisfy both sides of the debate. The government has announced that a 37.8% stake of the remaining 93% of the company will be floated on international exchanges, including the London Stock Exchange, between August 1 and the end of 2007.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree