The occupation administration of Luhansk plans to privatize state property next year. This indicates serious financial problems faced by the occupiers. Their treasury is somewhat empty, and they are looking for ways to replenish the budget. The minimum privatization plan includes the sale of assets worth at least 120 million rubles.
This privatization plan is a kind of emergency exit at the edge of the abyss for the occupiers. They are not receiving enough funding from Russia and have no own income, so they turn to unused property as a source of financing. Any properties can be chosen for privatization, starting from administrative buildings and ending with enterprises and infrastructure.
However, according to the Center for National Resistance, the real buyers will be those who support the regime and have connections with the administration. They are provided with closed procedures and below-market pricing for assets. This situation appears as a controlled redistribution of property among influential groups close to power.
The Center for National Resistance emphasizes that this approach does not contribute to economic development but only facilitates the legalization of the sale of Ukrainian state property. This may endanger the interests of the local population and reinforce the colonial model of governance.
The Ukrainian territory occupied by the so-called 'LPR' faces serious financial difficulties that force the occupiers to seek additional sources of funding through the privatization of state property. The privatization process in this region may lead to controlled redistribution of ownership and confirm the colonial state of governance, which does not promote economic development and may endanger the interests of the local population.