Head of the Servant of the People faction David Arakhamia has withdrawn his bill No. 11195 on the mechanism for protecting the property rights of third parties, CEO of the Union of Ukrainian Entrepreneurs (SUP) Kateryna Hlazkova said.

"Today we have important news: frankly risky bill No. 11195 on the collection of private property for the state benefit has been withdrawn! Let me remind you that it contained significant risks for Ukrainian business, namely a threat to property rights," she wrote on Facebook.

Hlazkova indicated that the SUP, together with the Verkhovna Rada Committee on Economic Development and the Ministry of Justice, is ready to develop a new draft law.

"I am confident that the new bill will preserve the constitutional rights of entrepreneurs and will not create risks for the investment climate in Ukraine," she emphasized.

As reported, bill No. 11195 was registered at the Verkhovna Rada on April 22. According to it, it was planned to collect 100% of shares or stakes of legal entities in which sanctioned persons act as indirect co-owners as state revenue, while shares and/or stakes of non-sanctioned persons are credited to special escrow accounts. If, within five years from the date of crediting the rights to securities and/or shares to escrow accounts, non-sanctioned persons have not taken any actions to formalize the acquisition of ownership rights to them, it is considered that they have renounced them.

In this case, if the direct or indirect share of sanctioned persons in the capital is up to 25%, the decision to collect all 100% in favor of the state is made by the government, and not the High Anti-Corruption Court (HACC).

The SUP and the European Business Association (EBA) criticized the bill, insisting on conducting an anti-corruption examination of the bill provisions.