Ukrainian government proposes cutting list of facilities not subject to privatization by almost two thirds, says bill
The Ukrainian government has proposed that the number of facilities not subject to privatization be cut by almost two thirds, from 1,478 to 543.
The bill on amendments to the law on the list of state-owned facilities not subject to privatization was registered in the Ukrainian parliament (No. 4541A), the press service of the Cabinet of Ministers has reported.
"If the bill is passed, the ban on the privatization of liquor, vodka, spirit [enterprises], the energy and coal sectors, engineering enterprises and aircraft buildings enterprises will be lifted," reads the report.
A mechanism for toughening state control over the retaining and maintaining of the enterprises that are of general state importance and not subject to privatization is foreseen.
"The bill proposes that a list of state-owned facilities that not subject to privatization (250 facilities) and a list of joint-stock companies state stakes in which not subject to privatization (19 joint-stock companies) be approved," the press service of the government reported.
In addition, a new approach to the attraction of investors to strategic enterprises is foreseen. In particular, it is proposed that a list of state-owned facilities the controlling stakes of 60% in which are not subject to privatization is approved, and the rest of the stakes are privatized under a decision of the Cabinet of Ministers and the National Security and Defense Council. The cabinet has included three companies into the list now: Energoatom, Zorya-Mashproekt and Turboatom.
"The bill also places a ban on the privatization of state-owned facilities located on the occupied territory of Crimea and Sevastopol City – 271 facilities," reads the report.
According to an explanatory note to the bill, it is suggested that the enterprises that are withdrawn from the ban on privatization are temporarily protected from the procedures for selling their property, in particular, in the bankruptcy procedures. The document foresees the termination of proceedings in bankruptcy cases of the said enterprises and a moratorium on the launch of proceedings in bankruptcy cases during three years.
"The requirements do not apply to state-owned facilities that are liquidated under the decision of the owner. The proposed restrictions will allow authorized management agencies to take all the required measures to stabilize the financial and economic state of enterprises and initiate their privatization or liquidation if it is appropriate," reads the note.
In addition, the bill is extended with the requirements of the ban on privatization of state-owned facilities in the agricultural sector, which are removed from the list, but the law on specifics of privatization in the agro-industrial sector applies to them, until amendments to laws on the introduction of the competitive procedure for selling property of agricultural companies are made.