A A A K K K

Legislative initiatives: discussion on the implementation of legislation related to the activities of the State Property Fund of Ukraine

The SPFU team, led by Vitaliy Koval, met with Deputy Chairman of the Committee on Economic Development of the Verkhovna Rada Oleksii Movchan, members of the Board of JSC Prozorro.Sales, and a representative of the Soera project.

Vitaliy Koval emphasized, “The SPFU essentially forms ownership policy. It is time to break stereotypes and start implementing new paradigms by adopting the experience of our foreign partners. Currently, the SPFU team is analyzing the experience of 20 countries, with the most suitable models found in Poland, France, and Sweden”.

The key topic of the meeting was the discussion of current initiatives related to the activities of the SPFU, including:

  • Draft Law on Amendments to Certain Legislative Acts Regarding the Efficiency of State and Municipal Property Management and Restoration Processes, No. 11069;
  • Draft Law on Amendments to Certain Legislative Acts of Ukraine Regarding the Efficiency of Social Property Management and Improvement of Legislation in the Rental Sector, No. 11071;
  • Draft Law on Amendments to Certain Laws of Ukraine Regarding the Management of Coal Mining Enterprises’ Property, Military Property, and Other State Property, No. 11089;
  • Draft Law on Amendments to Certain Laws of Ukraine Regarding the Efficiency of State Property Management, Improvement of the Mechanism for Selling Seized Property, and Bringing Legal Standards in Ukraine Closer to European Standards, No. 11139, among others.

The SPFU representatives shared the initial results of the triage (analysis of transferred objects based on their ability to conduct economic activities and the presence of liquid assets) of state enterprises. Since the process has been completed, 1,183 state enterprises have undergone triage. Based on the results, decisions will be made regarding the future actions for each enterprise: bankruptcy, liquidation, or privatization.

Another topic of discussion was the new SPFU project – the Land Bank. Participants outlined the implementation mechanisms and legislative changes required, in cooperation with other agencies. The Fund has already conducted preparatory work: inventorying state land assets, identifying the portion belonging to the Fund, and determining the list of enterprises whose lands will be auctioned for lease first. This project will allow farmers to access the state agricultural land market via online auctions. This will ensure the market value of leases, which will depend on location, soil quality, and infrastructure availability, with a starting price of 12% of the normative monetary valuation of the land. The Land Bank is set to launch this summer.

Participants also exchanged views on the overall revenue of the SPFU from all activities and restructuring issues. In particular, they discussed the feasibility and outcomes of merging structural units and redistributing functions within the agency, specifically focusing on draft law No. 8250.

As a result, the meeting participants agreed to work jointly on legislative initiatives and to seek additional resources that would improve the agency’s performance.

PrivatizationRentCorporate governance