On Mar. 28, presentation of a new Draft Law “On privatization” took place. The law should facilitate the process of selling state property facilities. The document was prepared by the Ministry of Economic Development and Trade, the State Property Fund of Ukraine with the participation of the international law firm “Baker & McKenzie”, and the support of the European Bank for Reconstruction and Development.
The Draft Law will help to bring the process of selling state assets on a global level and move to market pricing. For example, the price of an object will be determined by effective demand rather than by assessing its value.
Moreover, a new approach to the classification of facilities of large and small-scale privatization was introduced. In particular, enterprises having total assets of over UAH 250 million will belong to the large ones. Thus, only 60 of 900 objects offered for privatization will fall into this category.
To sell a large privatization object, an investment advisor should be attracted. One of the reputable investment banks may act as the investment advisor, whose task will be to study the demand for this facility and to offer the starting price to the State Property Fund. A tender winner will be determined at an auction, which will be carried out in two stages.
Small items will be sold through an open auction on the internet platform similar to ProZorro.Prodazhi.
Source: Ministry of Economic Development and Trade