Government forced to extend privatization plan to 2016

17:08, 12.10.2015 1 min read

The Cabinet of Ministers has been forced to extend the plan to privatize state-owned enterprises from 2015 until 2016.

According to the website of the Ukrainian State Property Fund (SPF), the Cabinet extended decision No. 271 of May 12, 2015 on conducting a transparent and competitive privatization in 2015 to 2016.

The reason for the extension of the privatization process by the State Property Fund is the slowdown of transferring objects to the SPF for privatization.

Another factor is that the Verkhovna Rada has not approved all the legislative changes that are needed to start privatization. In particular, the Verkhovna Rada has not considered draft law No. 2319a amending the law on state property privatization and on the State Property Fund. This bill will prevent the access of buyers from Russia to privatization, while traders in securities will have to submit information on persons in whose interests they buy state corporate laws.

The bill also removes the norm on the compulsory sale on stock exchanges of 5-10% of shares in B and D group objects up to holding a tender and will allow the SPF to involve advisers in the privatization process.