New law on privatization to be enforced in Ukraine March 7

Photo from UNIAN The new law on privatization, which effectively bans Russian companies from buying Ukrainian state-owned enterprises, will enter into force on March 7. The law, earlier signed by the president, is on March 6 published in the Ukrainian parliament&#39;s official newspaper Holos Ukrainy and is set to come into force the day after its publication. The law provides for the sale of large state-owned companies (with a book value of over UAH 250 million) through auctions involving acclaimed advisers, as well as the sale of smaller companies through Prozorro-based electronic auctions. Legal entities, where 10% of beneficiaries are residents of the aggressor state, Russia, will not be allowed to acquire state assets in Ukraine. Read alsoIMF issues recommendations to Ukraine to ensure continued cooperationAt the same time, the new law significantly simplifies privatization procedure, squeezing all regulations into a single law instead of an earlier seven, and allows buyers to challenge bidding results in international arbitration. As UNIAN reported earlier, Ukrainian President Petro Poroshenko in early March signed a law on privatization, which should significantly simplify the sale of state enterprises and which forbids investors from aggressor countries, particularly from Russia, to participate in privatization. Ukrainian Prime Minister Volodymyr Groysman said that this law will attract investors to unprofitable state enterprises, as well as reduce the level of corruption. Read alsoRada bars Russians from buying Ukraine’s SOEsThe adoption of a new law on privatization, introducing modern and effective mechanisms for the sale of state assets, is a prerequisite for continuing cooperation with the IMF. The state budget for 2018 provides UAH 21.3 billion of revenues from privatization. In 2017, gains from the sale of state assets were planned at UAH 17.1 billion, but actual revenues amounted to UAH 3.4 billion. In total, the government plans to privatize over 900 state-owned companies.

New law on privatization to be enforced in Ukraine March 7

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