Ukraine's property fund set to terminate contracts with buyers of 11 state enterprises

Acting head of the State Property Fund (SPF) of Ukraine Vitaliy Trubarov says the Fund is set to terminate contracts with buyers of 11 state-run enterprises.

"The Fund has been monitoring compliance with the terms and conditions under a [sale and purchase] contract within five years. If a new owner violates them, then such property is returned to state ownership," he wrote on Facebook on November 19.

Read alsoUkraine sells 84 facilities since start of small-scale privatization campaign

In particular, the SPF monitors the fulfillment of all investment obligations of privatized assets, after which it makes a decision regarding the termination of contracts or their recognition as invalid.

Now the Fund is working to terminate and recognize null and void the sale and purchase agreements related to 11 shareholdings of state-owned enterprises, 16 single property complexes, and 94 facilities under construction, he added.

As UNIAN reported earlier, the Verkhovna Rada, Ukraine's parliament, passed a bill on privatization of state property on January 18, 2018. Ukrainian President Petro Poroshenko enacted the bill into law in March 2018.

The state budget for 2018 provides for UAH 21.3 billion ($767.3 million) in privatization proceeds.

The State Property Fund plans that sales tenders for almost all large-scale privatization facilities will be held in 2019, not this year, as was earlier reported. In addition, the SPF expects to receive about UAH 2 billion (US$72 million) from the sale of small-scale privatization facilities in 2018.