On 30 March 2021, the Ukrainian Parliament adopted Draft Law No. 4543, which unblocks auction sales of state-owned companies and assets that are subject to large-scale privatisation. As we reported earlier, such auctions have been temporarily suspended since March 2020 as a quarantine measure.
Although the Draft Law lifts this legislative ban, the ability to hold physical auctions remains subject to anti-epidemiologic restrictions, which can be introduced by the Cabinet of Ministers of Ukraine from time to time, depending on the current epidemiological situation in Ukraine.
The Ministry of Development of Economy, Trade and Agriculture of Ukraine expects that unblocking large-scale privatisation will attract substantial investment and increase state budget revenues by UAH 12 billion (equal to EUR 362 million).
The Draft Law will become effective after it is signed by the President of Ukraine and officially published, which is expected shortly.
Previous CMS updates on the State Property Fund’s plans to sell a number of large state-owned companies in 2021 can be found here.
CMS will continue to monitor privatisation news and will keep you updated on any developments.
For more information on this Draft Law, contact your local CMS advisor or local CMS experts: Maria Orlyk, Tetyana Dovgan, Graham Conlon.
Legislation: the Draft Law No. 4543 “On Amendments to Section V “Final and Transitional Provisions” of the Law of Ukraine “On Privatisation of State-Owned and Municipal Property” concerning large-scale privatisation”.
