Poroshenko signs law to spur privatization

Ukrainian President Petro Poroshenko has signed law No. 1005-VІІІ on amendments to some law of Ukraine to streamline the process of privatization, which was passed by the Verkhovna Rada on February 16, the presidential press service said.

This law improves the provisions of the Law on Privatization of State Property by ensuring transparency and openness of privatization, stepping up the protection of national interests amid reform in property relations.

The law, in particular, bars companies and individuals that are registered in a country designated by the Verkhovna Rada as an aggressor state or that are subject to sanctions, from participating in privatization.

The legal entities whose owners are residents of an aggressor state will also not be allowed to participate in the privatization process.

"It also foresees the possibility of engaging advisers in keeping with the government's decision and under Cabinet-approved procedures in preparations for privatization and the sale of strategic enterprises, which will encourage privatization procedures in accordance with international standards," it said.

In addition, the law no longer includes the provision under which joint stock companies' shares worth 5-10% of charter capital are subject to sale on the stock exchange for holding a privatization tender.

"This will prevent the fragmentation of shareholdings, and will accelerate the process of privatization," it said.

The law comes into force on the day following its publication. The State Property Fund of Ukraine will be in charge of its implementation.

The Rada passed this draft law after several attempts since November 2015. Economy Minister Aivaras Abromavicius repeatedly stressed the need to adopt that law.

The government planned to start the large-scale privatization with the sale of Odesa Port-Side Chemical Plant. Put up for sale could also be regional power distribution companies and energy generation company Centrenergo.