The Parliament of Ukraine on January 18, 2018 adopted a law on the privatization of state property

The Parliament of Ukraine at the meeting on January 18, 2018 adopted a law on the privatization of state property. 266 people’s deputies voted for the relevant decision.

The law establishes a simplified classification of privatization objects for objects of small and large privatization; requirements for buyers of privatization objects and restrictions on their participation in privatization; responsibility for inaccuracy, incompleteness of submitted documents; the range of objects that may be subject to privatization has been expanded.

In particular, state enterprises and facilities necessary for the state to perform its basic functions, to ensure the defense capability of the state, and objects of property rights of the Ukrainian people, property that makes up the material basis of Ukraine’s sovereignty are not subject to privatization.

The list of communal property objects subject to privatization is adopted by the local council. The inclusion of new facilities in this list is carried out by adopting a separate decision on each object of communal property.

In addition, the approach to the sale of small and large enterprises is changing. The new law clearly establishes 11 months for large privatization objects and 5 months for small ones. It is envisaged that if the value of the company’s assets exceeds 250 million hryvnias over the past year, then this is a large privatization facility that will be sold with the assistance of an advisor. Assets with value less than the above amount is considered a small privatization that will take place exclusively on electronic platforms. The document also establishes a clear procedure for privatization; requirements for the formation and approval of lists of objects subject to privatization; the procedure for making a decision on privatization. State privatization authorities, authorized management bodies, other subjects of management of state property objects or buyers can initiate the privatization processes of the objects.
Last September, the head of the State Property Fund announced that the state agency intends to privatize the state stake in PJSC Odessa Port Plant in the spring of 2018.

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