Rada Simplifies Privatization Of State-Owned Enterprises

The Verkhovna Rada simplified the privatization of state-owned enterprises.

Ukrainian News Agency learned this from a statement of the State Property Fund.

"On July 28, the Verkhovna Rada, by 233 votes, adopted bill 7451 in the second reading and as a whole, which speeds up privatization and promotes business relocation and the economic recovery of the state. From now on, the procedures for the sale of state property will become faster, more transparent, and, accordingly, more convenient for business. Thanks to the updated legislative norms, farmers will be able to purchase and modernize non-functioning state distilleries and bread factories. This will allow to partially solve the issue of grain storage and processing, and the creation of a product with added value," the statement reads.

According to the notification, this law provides:

- significant shortening of the terms of conducting privatization auctions and preparing facilities - no more than 2 months from the announcement to the signing of the contract;

- risk minimization - payment before concluding a sales contract;

- unblocking the privatization of state-owned enterprises with property seizures and encumbrances (only with already adopted decisions on the privatization of such 115) - while preserving the rights of creditors;

- large-scale privatization at online auctions;

- transfer of all permits and licenses to the new owners of a single property complex, instead of the need for entrepreneurs to reissue all permit documents;

- digitization of key privatization processes - online auction announcements.

In addition, according to the statement, significant changes have been made to the procedures of large-scale privatization - this concerns the sale of objects with a book value of more than UAH 250 million.

In particular, all such auctions have been transferred to Prozorro.Sales, which makes it impossible for outside influence on auction participants, saves the state money and eliminates corruption risks regarding the completeness of providing information about objects.

"The bill 7451 is an important step towards the restoration of business activity in Ukraine. Entrepreneurs received convenient mechanisms for the development and restart of production. The changes made to the legislation will contribute to the reconstruction of the country after the victory. The adopted legislative initiatives allow us to better protect the interests of the state and the business that awaits to restart privatization," stressed the acting Olha Batova, head of the State Property Fund.

As Ukrainian News Agency reported, in July, the Cabinet of Ministers approved a list of 420 state-owned enterprises that will be transferred to the State Property Fund for further privatization, reorganization or liquidation.

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