The SPFU Presented the Latest Version of the Law on Privatization at the Economic Committee of the Verkhovna Rada

The State Property Fund introduced the revised law draft on the privatization of state property at a session of the Committee on Economic Policy of the Verkhovna Rada on September 20, 2017.

The bill was drafted jointly by the State Property Fund and the MEDT with the involvement of international advisors, and according to the head of the State Property Fund Vitalii Trubarov this version of the document is the most balanced and takes into account both the interests of the investor and the state.

The revised bill on the privatization of state property is already registered in the Verkhovna Rada with number 7066.

“This law opens the way for a transparent, competitive and most profitable for state privatization. We have united a large number of normative documents and made one that is understandable to investors, and most importantly, excludes any corrupt practices”,- said Vitalii Trubarov, Head of the State Property Fund.

Vitalii Trubarov notes that the draft abolishes the classification of privatization objects by groups and establishes clear divisions into objects of large and small privatization, namely, up to 250 million UAH of annual turnover are small objects, after 250 are large ones.

“Large enterprises will be sold at auctions with the involvement of advisers which are global auditing companies and will prepare a financial model for the investors and will formulate a proposal for a starting price for the State Property Fund. Objects of small privatization will be sold mainly through electronic auctions”,- notes Vitalii Trubarov, Head of the State Property Fund.

Vitalii Trubarov notes the new law shortens the timing of preparing enterprises for sale. For objects of large privatization from 24 to 12 months, for small privatization from 12 to 4 months. “The investor does not want to wait for years to complete the bureaucratic procedures; he wants to pay the money and get the property”, - said Trubarov.