Out of a total 3,332 state-run enterprises, of which 1,369 are functioning, only 802 enterprises (24%) are profitable, according to “Economic Truth’s” weekly monitor of the effectiveness of state-owned facilities.
The results of a study of government-owned enterprises showed, however, that some progress had been made towards privatization and reducing the burden on the state budget.
According to Ministry of Economy of Ukraine’s statistics, the total share of assets owned by state-run enterprises has decreased, dropping from more than $62 million in Q4 2020 to $61 million in Q1 2021. These government enterprises are managed by 87 individual management entities.
The data also suggests that the total number of employees currently employed by state-owned enterprises fell slightly too, dropping by 31,000 to 684,000.
In the first quarter of 2021 alone, state-owned enterprises contributed over $768 million in profits to the state budget of Ukraine. In the same period last year, state-owned enterprises had suffered losses of over $600 million.
These statistics may be subject to later revision by the government, as the results of this report are based on interim financial statements. It is expected that by the end of the year, an annual audit will provide a clearer picture of the current financial state of Ukraine’s state-run assets.
