The Verkhovna Rada adopted draft law No. 7451 on simplification of privatization in the second reading and in general, in particular to facilitate the relocation of enterprises to safer regions. 233 MPs voted in favor.
Now the state will have the opportunity to get rid of the significant ballast of enterprises that have burdened the national budget and generated losses for years. Moreover, it will be possible to earn money from selling these assets.
“In the context of the falling economic activity and a rapid decline in GDP, privatization can mitigate the impact of the war on the budget,” comments Khrystyna Zelinska, head of public property management of TI Ukraine.
MPs have listened to the recommendations of TI Ukraine and have removed several risky provisions from the draft law before the second reading, in particular:
- They abandoned the idea of concealing all information about auctions during the war.
- They decided not to differentiate the guarantee fees, and therefore not to impose an additional financial burden on the relocating business.
- They restricted the circle of enterprises where a person can be appointed as the head concurrently.
Read more about the new rules of privatization during the war in our legal analysis.
In the context of the falling economic activity and a rapid decline in GDP, privatization can mitigate the impact of the war on the budget.