On the 13th September 2019 the Parliament of Ukraine adopted the draft law No.1054-1 \u201cOn Abolition of Law of Ukraine on List of Objects of State Ownership that cannot be Privatised\u201d on its first reading.<\/p>\n
Initially, there was another draft law No.1054 that was identified by the President of Ukraine as urgent.<\/em><\/p>\n However, in September the same MPs who composed the draft law No.1054 made changes and introduced the new draft law No.1054-1 to the public. Finally on the 2nd October the Bill No.1054-1 was adopted by the Parliament. <\/i><\/p>\n The law provides amendments to the following laws of Ukraine: On Privatisation of State and Communal Property and On List of Objects of State Ownership that cannot be Privatised.<\/p>\n Although the proposed amendments are very narrow compared to other current draft laws in the Ukrainian Parliament, this particular law is expected to be supportive to investment activity in Ukraine. Furthermore, it shows a clear shift from inherited aspects of the Soviet-era planned economy and a purposeful step closer to a free market economy in Ukraine.<\/i><\/b><\/p>\n Background <\/b><\/p>\n The main change introduced by this draft law will occur in the Law of Ukraine On List of Objects of State Ownership that cannot be Privatised (the \u201cList\u201d). The List, which will be abolished by this draft law, includes precise names and locations of public enterprises in Ukraine that cannot be privatised. The substantiation of the List is another Law of Ukraine On Privatisation of State and Communal Property that in article 4 contains criteria of state assets that cannot be privatised. Based on these criteria, the Ukrainian Parliament had adopted as a Law of Ukraine the list of specified public enterprises that cannot be sold to the private sector.<\/p>\n The List was first adopted in 1999 (with amendments) and includes terminals of seaports, airports, grain elevators, even airlines (for instance, Public Enterprise \u201cOdessa Airlines\u201d), radio centres and film studios.<\/p>\n Effect of adopting the draft law No.1054-1 <\/b><\/p>\n The draft law proposes to abolish the List and make it possible to privatise such assets. However, it is only the beginning of the privatisation process. The State Property Fund of Ukraine will be responsible for the sale of state assets through an open auction process.<\/p>\n The draft law also amends the Law of Ukraine On Privatisation of State and Communal Property. It proposes amending the criteria of public enterprises that cannot be privatised such as military equipment manufacturers and sport infrastructure for international sporting competitions. Moreover, the draft law forbids the privatisation of state assets situated in temporarily occupied territories.<\/p>\n Every region has many state objects to sell (in the list you can find the most relevant examples), including a Regional Broadcasting Center, distilleries and grain elevators. Schedule 1 lists the state property that can be legally privatized as a result of this law.<\/p>\n Meanwhile, the State Property Fund of Ukraine this January approved the list of privatisation in 2019 that included electricity plants (Ternopil Oblenergo, Centerenergo, Kharkivoblenergo, Zaporizziaoblenergo) and Odessa Port Factory. This privatization has not occurred and a new list should be shortly prepared by the Fund and updated to reflect law No.1054-1 (as it was notified as urgent by the President of Ukraine).<\/p>\n Conclusion <\/b><\/p>\n To summarise, although the law No.1054-1 is very small in volume (only one page of a text), it determines an important aspect of state policy for coming years and aims to promote significant investment activity in Ukraine. The draft law represents a first step in the revamped process of privatisation. The decision to sell state assets remains the competence of the State Property Fund of Ukraine. Privatisation is seen a key priority among the supranational institutions supporting Ukraine and the law sends a signal to the international community that Ukraine serious about reforming its economy.<\/i><\/b><\/p>\n Schedule 1 <\/b><\/p>\n Donetsk region (mines) <\/b><\/p>\n Central Bureau of Scientific Technical Information<\/p>\n The Dzerzinski mine<\/p>\n The Torezka mine<\/p>\n The Nova mine<\/p>\n The Pivnicna mine<\/p>\n The Artem mine<\/p>\n The Pivdenna mine<\/p>\n The Mechanical Repair Factory \u201cDzerzinskcoal\u201d<\/p>\n The Dzerzinska factory<\/p>\n The Mariupol Seaport<\/p>\n Dnipro region (mechanical engineering, metallurgy, grain elevators, distilleries) <\/b><\/p>\n The Eastern Mining and Processing Plant<\/p>\n The Dnipro Regional Broadcasting Center<\/p>\n The Pavlograd Chemical Plant<\/p>\n The Southern Mechanical Engineering Factory<\/p>\n The Isotope Enterprise \u201cUkrmetalurgisotop\u201d<\/p>\n The Pavlopil Grain Elevator<\/p>\n The Balivka Bakery<\/p>\n The Dnipro Stud Farm<\/p>\n The Dnipro Distillery Factory<\/p>\n The Dnipro Wine Distillery Factory<\/p>\n Ivano-Frankovsk region <\/b><\/p>\n The Company for Purchasing Liquefied Gas \u201cUkrtransgas\u201d<\/p>\n Kyiv region<\/b><\/p>\n The Borispol Company on Petroleum Product Pipelines<\/p>\n The Central Company for Processing Radioactive Wastes<\/p>\n The Zuliani Mechanical Engineering Plant \u201cVisar\u201d<\/p>\n Lviv region <\/b><\/p>\n The Dashava Factory of Composite materials<\/p>\n Petroleum Product Pipelines Company \u201cDruzba\u201d<\/p>\n The Lviv Regional Broadcasting Center<\/p>\n The Special Production Factory \u201cLorta\u201d<\/p>\n Kyiv <\/b><\/p>\n Naftogas of Ukraine<\/p>\n The Company of Technological Connection \u201cUkrnaftozviazok\u201d<\/p>\n The National Expo Center of Ukraine<\/p>\n The Production Enterprise \u201cIsotop\u201d<\/p>\n The Special Production for Arsenal Factory<\/p>\n The Mechanical Engineering Firm Artem<\/p>\n Borispol International Airport<\/p>\n Publishing houses \u201cVeselka\u201d, \u201cDnipro\u201d, \u201cZdorovia\u201d, \u201cLibid\u201d, \u201cMistectvo\u201d, \u201cMuzicna Ukraina\u201d, \u201cUkrainska Enciklopedia\u201d, \u201cUrozai\u201d, \u201cTehnika\u201d<\/p>\n Film studios \u201cUkrkinhronika\u201d, \u201cUkranimafilm\u201d<\/p>\n Vinnitsia region (distilleries, grain elevators) <\/b><\/p>\n The Kalinivka Production Factory<\/p>\n The Vinnitsia Alcohol Factory<\/p>\n The Bershad Alcohol Factory<\/p>\n The Bar Alcohol Factory<\/p>\n The Martinivka Alcohol Factory<\/p>\n The Chechelnitski Alcohol Factory<\/p>\n The Trostianecki Alcohol Factory<\/p>\n The Urkivecki Alcohol Factory<\/p>\n The Bdzilnianski Alcohol Factory<\/p>\n The Ovecacki Alcohol Factory<\/p>\n The Uladiv Alcohol Factory<\/p>\n The Nemiriv Alcohol Factory<\/p>\n The Gaisin Alcohol Factory<\/p>\n The Pishansk Open-Cast Mine<\/p>\n The Vinnitsia Distillery Factory<\/p>\n The Ladizinka Alcohol Factory \u201cExtra\u201d<\/p>\n The Brailov Juice Factory<\/p>\n Volin region<\/b><\/p>\n The Lutsk Distillery Plant<\/p>\n The Kovel Veterinary Plant<\/p>\n The Lutsk Bakery<\/p>\n The Volodimir-Volinski Bakery<\/p>\n Zaporizhia region<\/b><\/p>\n The Factory \u201cTramplin\u201d<\/p>\n The Zaporizzia Electronic Mechanical Engineering Plant \u201cIskra\u201d<\/p>\n The Zaporizzia Regional Broadcasting Center<\/p>\n The Berdiansk Seaport<\/p>\n Lugansk region<\/b><\/p>\n The Petrovski Chemival Plant<\/p>\n The Chemical Plant \u201cZoria\u201d<\/p>\n The Workbench Factory<\/p>\n Mykolaiv<\/b><\/p>\n The Komunar Shipbuilding Factory<\/p>\n The Mykolaiv Seaport<\/p>\n Odessa region (seaports)<\/b><\/p>\n The Odessa Seaport<\/p>\n The Illichivsk Seaport<\/p>\n The Illichivsk Fish Seaport<\/p>\n The Reni River Port<\/p>\n The Izmail Seaport<\/p>\n The Southern Seaport<\/p>\n Sumi region <\/b><\/p>\n The Shostka Factory \u201cImpuls\u201d<\/p>\n The Shostka Factory \u201cZirka\u201d<\/p>\n Kharkiv region<\/b><\/p>\n The Kharkiv Radio Factory<\/p>\n The Dzerzinsk Izum Instrument Making Plant<\/p>\n The Kharkiv Machine Engineering Plant \u201cFed\u201d<\/p>\n The Production Union \u201cMonolit\u201d<\/p>\n The Kharkiv Aviation Production Enterprise<\/p>\n The Kharkiv Electronic Mechanical Plant \u201cHems\u201d<\/p>\n The Production Union \u201cThe Malishev\u201d Plant<\/p>\n The Kharkiv Plant of Electronic Equipment<\/p>\n Disclaimer \u0412\u0438\u0431\u0430\u0447\u0442\u0435 \u0446\u0435\u0439 \u0442\u0435\u043a\u0441\u0442 \u0434\u043e\u0441\u0442\u0443\u043f\u043d\u0438\u0439 \u0442\u0456\u043b\u044c\u043a\u0438 \u0432 “\u0410\u043d\u0433\u043b\u0456\u0439\u0441\u044c\u043a\u0430”.<\/p>\n","protected":false},"author":5,"featured_media":1361,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[29,31,36],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/posts\/1038"}],"collection":[{"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/comments?post=1038"}],"version-history":[{"count":6,"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/posts\/1038\/revisions"}],"predecessor-version":[{"id":1925,"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/posts\/1038\/revisions\/1925"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/media\/1361"}],"wp:attachment":[{"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/media?parent=1038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/categories?post=1038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hillmont.com\/ua\/wp-json\/wp\/v2\/tags?post=1038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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