October 2, the Verkhovna Rada of Ukraine approved in the second reading bill No. 1054-1, which proposes to abolish the list of objects of state-run property that are not subject to privatization.

The approved bill was designed to intensify investment activity, to ensure equal rights for all economic entities, citizens and the state regarding the right to dispose of state-owned objects, as well as to remove invented bans for the privatization of state property.

“The list of more than 1,000 state-run property objects that were not subject to privatization under the 1999 law needs to be revised since it was formed basing on the Soviet approach to defining state property and the model for managing such property could not ensure its effective use. I am convinced that state-owned enterprises should be transparent and efficient businesses. Only then will the state and society be able to get the most productive impact on their activities”, said Minister of Economic Development, Trade and Agriculture of Ukraine Tymofii Mylovanov.

In addition, the draft law stipulates that state-run property objects located in the temporarily occupied territories are not subject to privatization until the full restoration of Ukraine's constitutional order within these territories.

“The adopted bill opens up opportunities not only for sale but also for the corporatization of enterprises in line with the best international practices. Only under such conditions, we can consider property sales. Today, it is critical to ensure the continued management of these businesses by effective owners, who are capable to ensure their development, modernization and creation of appropriate working conditions with the preservation of labor collectives. It is this law that is one of the many instruments that will help the state to solve this problem”, said First Deputy Minister Pavlo Kukhta commenting on the approved bill.

However, it should be noted that the approved innovations will not affect the facilities providing national security, enterprises producing weapons for the Armed Forces of Ukraine, enterprises of nuclear energy, sports facilities, communication facilities, culture, enterprises providing traffic safety and navigation services.