In the state sector of Ukraine’s economy, there is a severe crisis in management efficiency. According to calculations by the parliamentary financial committee, the level of losses among state enterprises is nearly twice the national average. Moreover, over 72% of state-controlled companies either do not engage in real activities or have the status of so-called phantom enterprises.
This is reported by Finway
Privatization – The Only Positive Outcome of the Year
Despite the overall negative trend, in 2024, significant overachievement of the privatization revenue plan was accomplished: nearly 10 billion hryvnias were received in the state budget, which is 247% of the planned figure. However, this result is more of an exception amid the other financial indicators.
Wage Arrears and Financial Imbalances
Problems with state property management are also evident in other areas. About 70% of state enterprises started 2025 without approved financial plans, complicating their operations and planning. Only 7% of companies with a state share exceeding 50% paid dividends to the budget.
The situation with wage debts remains particularly acute. In 2024, the debt at enterprises managed by the State Property Fund of Ukraine (SPFU) increased by 14% and reached 685.5 million hryvnias. At the same time, the average rental cost of state property decreased by 33% over the past year. The total debt of tenants to the state budget amounts to 409.3 million hryvnias, of which about 15% is considered hopeless debt.
“The level of losses in the state sector exceeds the national average by almost 100%, and 72.1% of state-controlled enterprises either do not operate at all or are entirely phantom enterprises.”
Most enterprises managed by the SPFU reported financial losses totaling 6.45 billion hryvnias. Such figures indicate a deep structural crisis in the field of state property management and the need for fundamental reforms.