Nationalization of Motor Sich will scare away investors and devalue privatized enterprises
Ukraine is going to sell large state-owned enterprises and at the same time takes Motor Sich away from Chinese investors, which will give a negative signal to investors and provoke a fall in prices for privatized enterprises.
The head of the Center for Analysis and Strategies, Igor Chalenko, stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“An interesting situation is emerging - we continue to talk about the inefficiency of the state (as an owner), but at the same time, for some reason, we raise the question of the nationalization of Motor Sich, which has been privatized since the mid-1990s. Yes, there are issues with China, the US position is clear. But, nevertheless, the enterprise operated profitably for 20 years, until the events of 2014 began. Then the Russian market was cut off and, accordingly, the owners of the enterprise had to look for ways out.
In fact, by starting large-scale privatization, we are giving a signal to investors.
I will say that this could provoke a number of investors who would potentially like to enter Ukraine and work here honestly, could put their interest on hold. But for those who understand in what country and under what conditions he works here - a corrupt economy, etc. - It is quite obvious that this may simply lead to the fact that the current large-scale privatization in the conditions that exist now, as well as in the deteriorating situation in the east, the price of enterprises here will fall.
Look at the capital of our oligarchs - how much they sank in 2014. They sank because the situation was absolutely unstable and the economy was falling. It all went down. Accordingly, the price of the enterprises currently on display will also go down sharply,” said Igor Chalenko.
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