The Rada raised the threshold for large-scale privatization — what is envisaged
Kyiv • UNN
Parliament supported a bill on changes to the privatization of state property. Buyers will pay 5% for the preparation of assets, but no more than 1,000 minimum wages.
The Verkhovna Rada adopted as a basis a bill providing for amendments to the privatization of state property. In particular, buyers of state assets will pay fees for the preparation of documentation, while the value threshold for large-scale privatization will be increased to UAH 1 billion. UNN reports this, citing a parliamentary session.
Details
Bill No. 16011 "On Amendments to Certain Laws of Ukraine Concerning Improving the Efficiency of State Property Privatization" was adopted in the first reading and as a basis by 244 MPs.
Under the document, large-scale privatization assets will include state- or municipally owned assets whose value, according to their financial statements, exceeded UAH 1 billion in the last reporting year.
Previously, this amount was UAH 250 million.
The document also provides for the establishment of an authorized legal entity that will be 100% state-owned, fall under the management of the State Property Fund of Ukraine, and be designated by the Cabinet of Ministers upon the submission of the SPFU.
The entity will be able to prepare technical documentation, register property rights, conduct audits, restore original documents, and handle the marketing and presentation of assets to potential buyers. It is also proposed to allow its employees to be engaged in performing the duties of managers of enterprises being prepared for privatization.
A fee of 5% of the sale price is proposed for preparing state property for privatization. At the same time, its upper limit will be capped at an amount equivalent to 1,000 minimum wages as of January 1 of the respective year. Currently, this amounts to UAH 8 million 647 thousand.
It should be noted that this bill is important for receiving the next tranche from the World Bank.
Previously
In October, the State Property Fund of Ukraine will put four major assets up for privatization auctions, including state-owned enterprises and confiscated sanctioned assets.