Gov’t to trigger large-scale privatization from September

Starting in September, the Government will resume the privatization of state-owned enterprises, which was suspended during the martial law period and then unblocked with the adoption of draft law No. 7451. In July, the Government approved a list of 420 objects after the triage procedure - sorting into those to remain in state ownership, those to be directed to privatization to the State Property Fund of Ukraine, and those to be liquidated.

"We have transferred 65 enterprises to the State Property Fund in July of this year. Over the past 4 years, the Fund has received 500 objects for privatization. We will continue to triage enterprises in order to hand over the maximum number of objects for privatization. We will start from September with distilleries and bread factories. We have already formed a certain schedule for the transfer of objects throughout Ukraine," said Yulia Svyrydenko, First Deputy Prime Minister/Minister of Economy of Ukraine.

Privatization will take place on simplified terms. Private entrepreneurs will be able to buy out complete property complexes, including those burdened by long-term property arrests (in this case, the buyer is also obliged to repay previously accumulated debts).

Also, guarantee fees will increase, and payment for the asset will be made prior to the conclusion of the sales contract.

The privatization process from the announcement of the auction to the signing of the contract will take no more than two months. If only one participant is registered in the auction, he can purchase the object at the price offered by him, but not lower than the starting price. If there are no buyers the first time, then repeated auctions will be allowed. A step-by-step reduction of the starting price will be allowed, but not more than 50%.

All permits and licenses of the enterprise will be kept for the new owners of the single property complexes.

It should be noted that in July the Government approved a list of 420 state-owned enterprises that would be transferred to the State Property Fund for further privatization and liquidation.