Corporatization of Forests of Ukraine provides for change of form of ownership of SOE to JSC – company
The corporatization of the state-owned enterprise Forests of Ukraine, which is provided for by the draft Government Action Program, published on Monday, provides for the transformation of the state-owned enterprise (SOE) into a joint-stock company (JSC), 100% of whose shares will belong to the state, director of the GR and corporatization department of the state-owned enterprise Yulia Plyska said in a commentary to "Interfax-Ukraine".
According to her, for the corporatization of the state-owned enterprise Forests of Ukraine, the State Forest Resources Agency of Ukraine has developed a special draft law, which is in the relevant ministry. Almost all the largest Ukrainian state-owned companies underwent corporatization on the basis of a special law. If the corporatization of the State Enterprise Forests of Ukraine takes place without a special bill, legislative regulation of certain aspects of the process will be necessary. This regulation will address the specifics of transforming the enterprise into a joint-stock company.
"The advantages of corporatization are a management model that is understandable to international investors, which is a condition for attracting investments. Conducting an independent assessment of assets will open up the possibility of attracting funds from international financial organizations: the World Bank, the European Bank for Reconstruction and Development (EBRD). Unlike a unitary enterprise, a joint-stock company has greater flexibility in implementing investment projects. In addition, a joint-stock company receives the right to direct funds from the sale of illiquid assets to the development of the company," Plyska noted.
It is expected that the corporatization of Forests of Ukraine will accelerate the introduction of new modern technologies, update the material and technical base and thus increase production efficiency. However, the state will remain the owner of the forest fund lands, which, as before, will not be subject to privatization.
As reported, the Cabinet of Ministers, in the draft Government Action Program published on Monday, named the adoption of new legislation on the timber market and the corporatization of the State Enterprise Forests of Ukraine as one of its priorities.
