The Supreme Council of Ukraine has passed Law No. 7066 "On Privatization of State and Municipal Property" by 266 votes on January 18. Vitaly Trubarov, acting chairman of the State Property Fund, pointed out that it is necessary to amend 20 legislative acts in order to make the law effective.
The law introduces the simplified classification of objects of small-scale and large-scale privatization. Specifically, if the value of assets of an enterprise has exceeded 250 million grivnas over the course of 12 months, it is classified as the object of large-scale privatization while assets valued at the lower sum of money fit into the category of the objects of small-scale privatization.
The time frames of a sale were amended as well. According to the law, the objects of large-scale and small-scale privatization shall be sold within 11 and five months respectively.
In addition, the document has expanded the list of objects subject to privatization.
Some government officials think that under the new rules, privatization would enable a change in Ukraine's economic system from the primary producing economy to the value-added one. Assets will be sold by public auctions to attract investments and technologies.
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