Package of draft laws on promoting the attraction of investments via privatization registered in the Verkhovna Rada

The Verkhovna Rada of Ukraine has registered draft laws on promoting the attraction of sustainable investments in the economy of Ukraine.

These draft laws were developed with the active participation of the State Property Fund, a group of people’s deputies of the Verkhovna Rada of Ukraine, the Office of Simple Decisions and Results, as well as a wide expert discussion, and they received positive assessments from representatives of the business environment and were supported by the National Reforms Council under the President of Ukraine.

The aim of the proposed changes is to accelerate economic growth by attracting sustainable investments, promoting the creation of new jobs, simplifying privatization and lease procedures, as well as restoring investor confidence while serving the interests of the state.

Legislative changes, in particular, include:

– simplification and stimulation of the privatization process for economic recovery and growth;

– support of communities: 10% of the funds from the privatization of small-scale privatization objects are directed to the budgets of local self-government;

– ensuring transparency and openness of privatization;

– protection of the rights and interests of investors and the state, in particular, through the creation of mechanisms for preserving licenses and permits for privatized assets, eliminating obstacles from the sale of objects burdened with arrest to a new owner with the transition of relevant obligations;

– overcoming the resistance of former interests, including due to the automatic termination of contracts with the heads of state-owned enterprises that are privatized;

– transformation of the State Property Fund of Ukraine – both organizationally and functionally;

– improvement of the processes of lease of state and communal property and harmonization of them with the legislation on privatization.

In case of positive consideration of the package of draft laws by MPs in the session hall, changes are also expected for the State Property Fund itself: the Fund will be transformed into a single legal entity instead of the central office and 11 regional offices, which will simplify accountability and control.

The package of draft laws amends 27 legislative acts and three codes by separate draft laws, and consists of the following draft normative acts:

“On Amendments to the Law of Ukraine “On the State Property Fund of Ukraine” and other legislative acts of Ukraine on promoting investment in the process of privatization and lease of state and communal property”;

“On Amendments to the Budget Code of Ukraine (regarding funds from privatization of the state property)”;

“On Amendments to the Tax Code of Ukraine (regarding the sale of state and communal property in tax lien)“;

“On Amendments to the Code of Ukraine on Administrative Offenses and the Criminal Procedure Code of Ukraine regarding the improvement of the state policy of the state and communal property objects management “.

The State Property Fund expects a positive consideration of draft laws by the Verkhovna Rada.

Leave a Reply