A fair and transparent privatization under the new legislation allows to sale non-strategic assets to new owners, who in turn will bring new technologies, create new jobs, produce products, pay taxes to the Ukrainian budget, and, consequently, change the economy type from based on raw materials to that based on added value, announced Prime Minister of Ukraine Volodymyr Groysman on air of the ICTV channel.

"We still have a resource-based economy. Moreover, we are currently shaping a number of programs to change this model. For example,a privatization. We will sell (assets) at open auctions, we will attract investments as well as technologies. We also kick off an installment program for paying some taxes (primarily VAT), whilst upgrading equipment. We are interested in creating new working places, paying taxes and salaries here," the Head of Government stressed.

Background

On January 18, Parliament approved Government's bill on privatization of state property drafted in line with the best international practices and norms of the English law. The document was included in the package of the much-needed legislative initiatives aimed at developing of the economy and changing of the structure of industry in Ukraine. The draft law determines criterions, terms and mechanisms for conducting large and small privatization, singles out the issues of bankruptcy of companies and protection of investors, defines the principles of the functioning of the Advisor Institute, the evaluation of property and the determination of its starting price. The said document envisages a procedure of establishing of ownership rights and control over the implementation of investment obligations. A landmark innovation of the document is the definition of the dispute procedure, which enables the possibility of appeal to the International Commercial Arbitration Court and the conduct of the case following the principles of the English law rules.