The government has authorized the State Property Fund (SPF) to develop a new privatization policy meant to either suspend the sale of state property or introduce major changes in it. In other words, citing the world financial crisis, the Cabinet is indirectly suggesting that privatization be temporarily suspended. Meanwhile, a draft of the 1999 privatization program, already submitted to the Cabinet, estimates a total of UAH 800 million in budget revenues from privatization.
SPF officials do not seem to have a clear understanding of the ways in which the world financial crisis (which, by the way, is over by now) can have such an adverse effect on a country hardly active on the world financial market. There is a speculation that the government's inability to maintain the fledgling stability of the Ukrainian economy is being naively covered up by world financial cataclysms.
As far as privatization goes, our country has never been frequented by foreign investors anyway. However, SPF officials claim that Russia's financial hardships are a completely different matter. SPF Chairman Oleksandr Bondar points out that, while he generally opposes suspending privatization, there is still no point at the moment in selling Ukrainian enterprises tied to the Russian economy (oil refineries, for example).
The SPF Chairman, whose nomination the President has finally submitted to Verkhovna Rada for confirmation, said he is in for some "hot days," apparently referring to his upcoming information campaign in parliamentary factions and committees to ensure his legitimate appointment as SPF Chairman. Oleksandr Bondar is optimistic and is prepared to face the parliamentarians next week.






