OLEKSANDR BONDAR: “NORMAL NATIONALIZATION IS QUITE AN ORDINARY PROCESS”

The State Property Fund and Ukrainian privatization as a whole could have a real leader for the first time this year.

Experts believe that this will be a tangible factor to win a more serious attitude from potential investors to the Ukrainian denationalization process. In addition, certificate privatization seems to be drawing to a close, to be replaced by selling strategic objects for hard cash. And the number of investors sacred off by unstable legislation and the possibility of nationalization is not that large. In a word, Oleksandr Bondar, acting Head of the State Property Fund will have to work hard, at least twice. First, to pass muster in Parliament, and second, to actually sell state property. But let’s hear what he has to say.

Q: Mr. Bondar, word has it that because of the new Parliament being so Left-leaning there is a real possibility of nationalization. If so, what would you do?

A: Normal nationalization is quite an ordinary process.

Q: You mean you would accept it then?

A: Everything must be done in accordance with the law. I mean nationalization would be possible only if all owners received full compensation. Taking things away without compensation (as many would want it) is nothing but expropriation.

In fact, I think that a number of owners would be only happy to sell their enterprises to the state. The problem is, where would the state get the money? Thus, this problem is not likely to be resolved in the near future. As a variation of nationalization, some owners could be made to part with their property for not carrying out their investment commitments, but I think that this subject could be broached only after enacting an appropriate law. If ever I have to deal with this problem I will approach it from these standpoints and defend my position.

Q: How do you estimate your chances of passing muster in Parliament?

A: Half the deputies of the previous convocations would support me in theory. As for the new ones, I will have to reason with them. Honestly, I don’t expect any special problems here. At least up to now none of the factions has stated they will vote against me.

Q: What about your privatization plans? How do they differ from those of your predecessors?

A: The main difference is that I have a strategy. I know how to handle the privatization process. It was under my guidance that small-scale privatization was carried out and trading sessions began. There is no denying that our exchanges are functioning, is there? Another thing is whether I will be able to accomplish everything I plan. I will have to tackle the most complicated phase, the privatization of strategic property for money with the presidential campaign getting closer. One thing I know: I have never posed myself any task I was not sure I could handle.

Q: Are there any changes in the privatization plans for the energy-supplying companies and when will they be unfrozen?

A: All decisions have been made here. Arrangements have been made with the Prime Minister and Energy Ministry to lift the ban on their privatization. I am sure that we will be able to sell them. We have actually agreed to sell blocks of shares along with the right to control government shares. Investors will not have to pay for them but only for the right to manage them.

Q: Incidentally, experts predict certain complications in privatizing Ukrainian oil refineries, because similar projects have started being sold in Russia. Will this not divert potential Russian investors from Ukraine?

A: Of course it will. Russia’s finance sources are not limitless. Our task will be to regulate the process proceeding from privatization events in other countries. Here sales must be preceded by market research and a balanced approach to every deal. Real professionals know how to do this.