On January 18, the Verkhovna Rada of Ukraine supported the draft law “On Privatization of State and Communal Property”. The document is expected to help improve and accelerate the process of selling state-owned property. It is also anticipated that privatization will become more transparent. This descision was supported by 266 deputies.
The new bill predetermines two ways of selling state-owned property: via auction or repurchasing of privatization objects if the property was already leased at the time of law enactment.
According to the new law, all state-owned property that is subject to sale will be classified into objects of small-scale and large-scale privatization. The latter include objects whose asset value amounts to more than UAH 250 million. They will be sold with the assistance of a legal advisor. Privatization of objects whose asset value is smaller will be carried out exclusively via online auctions.
The preparation terms of state-owned property for sale are set as follows: 11 months for large objects and 5 months for small ones.
The list of objects of large-scale privatization is ratified by the government upon the submission of the State Property Fund of Ukraine, whereas the lists of objects of small-scale privatization – directly by the State Property Fund.
Privatization of property belonging to communal ownership is performed by institutions of local governing.
It is worth noting that the law does not apply to privatization of state residential properties, including dormitories.
Under the new law, state-owned enterprises and facilities that are required by the state to perform its specific functions, such as provision of defense, are not subject to privatization.
Source: Verkhovna Rada