Surprisingly for some, the Ukranian Ministry of Defense owns several hotels and are ready to privatize three of them.
If you are interested in buying hotels in Lviv, Kyiv or Kryvy Rih. Three such hotels will make it to auction soon. The Ministry of Defense of Ukraine is planning to transfer three hotels to the State Property Fund in the near future, according to Interfax-Ukraine.
The hotels are the Vlasta in Lviv, Kozatsky in Kyiv and Bratislava in Kryvy Rih. We could only find Vlasta Hotel in Lviv, a Hotel Bratislava in Kryvyh Rih and a Kozatskiy Hotel in Kyiv. None of them hold very positive reviews.
Deputy Head of the President’s Office Kyrylo Tymoshenkois the source for the information about the planned privatizations. According to Tymoshenko, none of the hotels make a profit:
“We thank the Minister of Defense. The letters have already been sent to the Fund, and I hope that in the near future these facilities will go for privatization,” Tymoshenko said at the Ukraine 30. Economy without Oligarchs forum in Kyiv on Wednesday.
Big effort ahead
Privatization of state owned companies is a long process. The goal is to implement a more market oriented economy while also removing companies that are hotspots for corruption according to many experts and politicians. In short, minimizing inefficiency and corruption.
Roughly two weeks ago, the Ukrainian state sold the first of many prisons, that are not living up to modern prison standards. The 39,800-square-meter prison and the 32 acres of land connected to the prison was sold on an auction for 13.6 million USD.
The government has previously tried to sell a prison north of Kyiv without luck due to a too-high asking price. The government, however, continues to push for the sale of prisons, where it is planning to sell one-third of its around 100 prisons in Ukraine. Four in 2021.
This is the time
The privatization effort was decided on long ago, but the recent pandemic put a stop to the plans. This summer is different though, as the government decided this spring that they would start the process now.
“We have begun processes that the leaders of our country have been avoiding for years. Probably because of their terrible names – demonopolization, de-shadowing, deregulation. We started large-scale privatization in Ukraine. It slowed down a little due to COVID-19, but we definitely realize that this process, important for the country, for business, will continue, getting rid of ballast, which brought only losses to the country and, unfortunately, brought corruption to Ukraine,” Zelensky said at the end of March.