REDUCING MARKET DISTORTIONS FOR A MORE PROSPEROUS UKRAINE 13 FIGURE 11 The Number of Markets with at Least One SOE, Ukraine and Comparator Countries 30 Ukraine*, 28 25 Ukraine, 19 20 OECD Average,13.7 15 10 5 0 as k es ia y y y ia a e y e y viaalta ea t azilicaeru aliay ael ica taly a key tia oniat ador andata agua P ium age eec landtinaeniafrancI w aine oa ndiagypt yprusLaMlandselandJapanKorChadmanelandBrChile ustrtugaler itaniaIsr v oliviarSpainedenunisiarurChinarIolandEaine* anama r emalaw anada agua enegalvinlandKenealand er RussiaBF w T r P ingdomCEst alvIenmartR CerIc arepublic JamaicaAelgorSustrF epublicepublicGrgen S NorTUkcuador C omaniaP D ed SBulgarGicarPUruguaosta RBP A olombiaaurNamibiaHungarLithuaniarSlo E ndonesiaenezuelaRUk Hondur El S Gua N C C M witzA outh A hilippines I V ed K Nether ak R S S P Unit v New Zech R OECD A z Unit Slo C ominican R D Source: Markets and Competition OECD-WBG PMR indicators (2018 for Ukraine; or most recent year) Note: *Includes additional sectors beyond those reported in the Market and Competition World Bank/OECD PMR data. Ukrainian SOEs are present in almost 30 economic FIGURE 12 Distribution of Ukraine’s 100 Largest sectors, and they hold signi昀椀cant market shares in SOEs by Sector more than half of the markets in which they operate. A Other plurality of Ukraine’s 100 largest SOEs operate in the service 23% sector (Figure 12). SOEs play an especially signi昀椀cant role in transportation (Figure 13), as well as other productivity-en- Services abling sectors such as electricity and banking. SOEs are also 41% present in extractive industries such as oil, gas, and coal Agriculture mining, manufacturing industries such as chemicals and 10% machinery, and commercial activities such as real estate. SOEs hold market shares greater than 50 percent in at least 25 15 of 28 subsectors and markets in which they operate. The law explicitly prohibits privatization of some of these. Industry 26% In addition to Energoatom, the list of SOEs protected from Source: MEDT (2015). privatization includes NJSC Naftogaz Ukrainy (the monop- Note: “Other” includes media companies, other public services, and real estate. oly gas importer), PJSC Ukrtranshaz (the monopoly gas transporter), PJSC Ukrzaliznytsia (a railroad-infrastructure operator and passenger and freight transporter); PJSC Ukrainske Dunayske Paroplavstvo (a freight and passenger 25 According to Markets and Competition OECD-WBG (2018) and MEDT (2015), at least one SOE operates in 28 subsectors and markets. However, this assessment is not necessarily exhaustive, and SOEs may also be active in additional subsectors and markets.