https://www.declassifieduk.org/uk-sees-privatisation-opportunities-in-ukraine-war/

British aid is being used to open up Ukraine’s wrecked economy to foreign investors and enhance trade with the UK.

Amid the devastating war in Ukraine, British economic aid to the country is focused on promoting pro-private sector reforms and on pressing the government to open up its economy to foreign investors. 

Recently-published Foreign Office documents on its flagship aid project in Ukraine, which supports privatisation, note that the war provides “opportunities” for Ukraine delivering on “some hugely important reforms”.

The government in Kyiv has in recent months been responding positively to these calls. Last month, president Volodymyr Zelensky signed a new law expanding the privatisation of state-owned banks in the country. 

It follows the Ukrainian government’s announcement in July of its ‘Large-Scale Privatisation 2024’ programme that is intended to drive foreign investment into the country and raise money for Ukraine’s struggling national budget, not least to fight Russia.

Large assets slated for privatisation currently include the country’s biggest producer of titanium ore, a leading producer of concrete products and a mining and processing plant. 

Ukraine envisaged privatising the country’s roughly 3,500 state-owned enterprises in a law of 2018, which said foreign citizens and companies could become owners.

The process stalled as a result of coronavirus and then Russia’s invasion in February 2022. But hundreds of smaller-scale enterprises are now being privatised, bringing in revenues of UAH 9.6bn (£181m) in the past two years. 

“The resumption of privatisation amid the full-scale war is an important step, which is already yielding results,” Ukraine’s economy minister Yulia Svyrydenko said last month. 

Another law enacted in June 2023 allows large-scale assets to be sold to foreigners or Ukrainians during the current martial law regime.  

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