Large-scale privatization, sanctioned property, improvement of the structure of the State Property Fund: the Verkhovna Rada adopted draft Law No. 8250

Today, May 30, the Verkhovna Rada adopted draft Law No. 8250 in the second reading and «in general». It is aimed at improving the management structure of the State Property Fund, unblocking large-scale privatization, and working more effectively with sanctioned property.

From now on, the Chairman of the SPFU will have the right to independently appoint and dismiss deputies. In addition, 12 regional divisions - separate legal entities will become structural subdivisions of the SPFU. As a result – more clear and understandable responsibility for the work of the State Property Fund, KPIs for divisions and market salaries for employees.

Also, the new law makes several changes to the work with sanctioned property:

- according to the decision of the High Anti-Corruption Court of Ukraine, sanctioned property will be transferred to the SPFU;

- SPFU will independently make management decisions on sanctioned property (privatization, sale, lease or management);

- money raised by the SPFU will be sent to the Fund for the Liquidation of the Consequences of Armed Aggression.

In addition, the draft law:

- will restore large-scale privatization;

- prohibits sanctioned persons and citizens oftheaggressor countries from holding positions of heads of state-owned enterprises and members of supervisory boards;

- cancels the procedure for the approval of the directors of state-owned enterprises, which are under the management of the SPFU, with local authorities;

- removes restrictions on the term of state property lease contracts for the period of martial law.