President of Ukraine signed a law unblocking large-scale privatization auctions

On April 29, 2021, Volodymyr Zelenskyy, the President of Ukraine signed the Law «On Amendments to Section V «Final and Transitional Provisions» of the Law of Ukraine «On Privatization of State and Communal Property» on the resumption of auctions for the sale of large-scale privatization objects" No. 1365-IX approved by the Verkhovna Rada on March 30, 2021.

According to Dmytro Sennychenko, Head of the State Property Fund of Ukraine, this is a historic event that opens the way to large-scale investments and allows to restore move on the way of all successful countries that, thanks to privatization, have reached a high standard of living for their citizens.

«The adoption of the Law on unblocking large-scale privatization by the Verkhovna Rada and its signing by the President of Ukraine indicates the real political will of the state leadership to attract sustainable investments in the Ukrainian economy through the privatization of non-core assets», -  Dmytro Sennychenko stated.

After the law enters into force, the day after its publication, the ban on large-scale privatization auctions will be lifted and the first transparent auctions will be held in the near future after the annual blocking.

A legislative ban on large-scale privatization auctions was established in 2020 in connection with the coronavirus pandemic, but the State Property Fund proved that the pandemic did not affect the interest of potential investors in privatization assets in 2020. Only through small-scale privatization the Fund exceeded the annual revenue plan back in June, and according to the results of the year held successful privatization auctions worth about UAH 3 billion.

The State Property Fund continued to increase positive dynamics in the field of privatization and in 2021, attracting about UAH 1 billion to the state budget according to the results of the first quarter of the year.

Taking into account the high interest of potential investors in privatization assets, the State Property Fund insisted on increasing the privatization revenue plan in 2021 from UAH 6 to UAH 12 billion, a prerequisite for the implementation of which was the lifting of legislative restrictions on large-scale privatization auctions.