The State Property Fund’s initiatives aimed at increasing its institutional capacity

Over the past two weeks, the Government has adopted 3 resolutions from 9, initiated by the State property Fund of Ukraine, it is only a small list of systemic measures designed to improve the processes undertaken by the Fund.

Today, on August 7, online on the Facebook page of the State Property Fund, Yuliya Byelova, Deputy Head of the Fund, and Yaroslava Maksymenko, lawyer of the Office of Sustainable Investments, told about the initiatives aimed at improving the privatization procedures, assessment and lease of state property.

Yuliya Byelova emphasized that the Fund’s reform and implementation of new practices would have been impossible without initiating legislative changes, and spoke about the main ones.

Thus, this week the Cabinet of Ministers of Ukraine adopted the Resolution, which provides for partial reimbursement of funds withdrawn from the privatization budget program and directed to the COVID-19 Response Fund. Due to this decision, UAH 48.4 million are currently in the process of return for providing privatization processes. Now the Budget Committee of the Verkhovna Rada of Ukraine should make decision – from this decision depends on the actual receipt of these funds.

In addition, at the beginning of the month, the Government adopted the Resolution that allowed to redistribute 160 vacancies from regional offices to the central apparatus of the Fund, which would allow to strengthen the corporate and privatization block in the central apparatus and strengthen in this way institutional capacity of the State Property Fund.

At the end of last month, the CMU adopted the Resolution initiated by the Fund aimed at improving the practices of state property inventory in those enterprises that are subject to privatization, which will significantly speed up and improve the procedures for technical processing of the preparation of objects to auctions.

The draft resolution on approval of new conditions in the contracts of heads of state-owned enterprises, which were transferred to the Fund for further privatization, is under review for agreement. In particular, it prescribes the establishment of a bonus reward for the sale of the company as a result of privatization. On the one hand, it will increase the interest of managers of state enterprises in privatization, and on the other – to increase their independence from external influence. Also, the draft resolution establishes the obligatory condition before the head to prevent a decrease in the value of the asset.

The Office of Sustainable Investments is the permanent assistant of the Fund, in particular, on issues related to exclusion of ambiguity and variability in application of normative legal acts, as well as implementing partner support for improvement, including legal technician; to strengthen expert support for privatization processes and expand the circle for legislative discussion on key draft legislations.