WHY THE CABMIN WANTS TO TAKE PROFITS FROM STATE-OWNED COMPANIES, ANATOLY AMELIN EXPLAINED

As reported yesterday, the CabMin increased the share of profits that the state companies will be giving to the budget up to 90%.

Read about the possible consequences of such a decision in the comments of Anatoly Amelin, the director of economic programmes of UIF.

Companies that give almost all of their profits – and 90 % is almost everything – will be lifeless. Given the fact that Ukrainian companies have been underfunded and underinvested during the past 25 years, there will be fewer and fewer opportunities for modernization and competitive work for such companies.

It is necessary not to touch these companies. It is necessary to capitalize them to the maximum level and sell them. On the other hand, it is necessary to attract investments, create conditions for economic growth and fill the budget with the profits coming from enterprises. But the government, as always, has no time for this.