Easing of privatization rules was supported by National Reform Council of Ukraine

Wed, 13.09.2017 07:26

The National Reform Council under the president of Ukraine supported the government's privatization bill, designed to bring to modern standards the procedure for the sale of state assets, that’s according to the press service of the Ministry of Economic Development and Trade.

"The new bill was developed by the Ministry of Economic Development jointly with the State Property Fund, and has already been submitted to the Verkhovna Rada of Ukraine (No. 7066 of September 4, 2017). Members of the National Reform Council expressed support for the bill and agreed with the need for privatization," the report said. According to First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv, who presented the bill at the NRC, the lack of proper quality regulation hinders the privatization process.

"It's no secret that privatization is not going at the pace that we imagined. Starting in 2015, we sold 48 enterprises worth a total of UAH 3.6 billion, while the target for privatization proceeds per year is UAH 17 billion," Kubiv said. According to the minister, the adoption of the bill will reduce from 1,231 to 378 the list of state-owned companies banned from privatization and begin the procedure for the implementation of state assets which are legally and financially complex.

"Let's face it - we have very few "easy" assets for sale, so the State Property Fund should act more subtly and professionally. They should approach the process of attracting private investors as investment banks approach the sale of assets," the deputy prime minister stressed.

As reported earlier, in July 2017, the Cabinet of Ministers of Ukraine approved and forwarded to the NRC a new draft law on privatization, providing for a significant simplification of the procedure for the sale of state assets. The bill provides for the regulation of privatization by a single law (now it’s seven laws), providing for only two types of assets put up for privatization (instead of the current five) - big and small.

Instead of five privatization procedures, it is proposed to leave two – auction and redemption. Big privatization objects will be sold exclusively with the participation of acclaimed advisors, while small ones will be sold through the Prozorro e-procurement system platform.

The proposed legislation says the whole privatization procedure shall only be challenged within the framework of English law. The government postponed large-scale privatization, which, in the framework of the memorandum with the IMF, was scheduled for the second half of the summer and autumn of this year, until the adoption by Parliament of the new legislation on privatization.

Source: UNIAN

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