The President of Ukraine, Volodymyr Zelenskyy, has signed the Law “On the Restoration of Large-scale Privatization”

The President of Ukraine, Volodymyr Zelenskyy, has signed Law № 3137-IX “On the Restoration of Large-scale Privatization”. The Verkhovna Rada adopted the relevant bill № 8250 in the second reading and as a whole on May 30.

“Thanks to the joint work of the President, the Verkhovna Rada and the Government, we are restoring large-scale privatization. Attracting private investments in state-owned enterprises means new technologies, modernization of the economy, development of infrastructure, and increasing the competitiveness of our country,” stressed the Chairman of the SPFU, Rustem Umerov.

In addition to the restoration of large-scale privatization, the new Law also provides for a number of important provisions related to the work of the State Property Fund of Ukraine. From now on, the Chairman of the SPFU will have the right to independently appoint and dismiss deputies. In addition, 12 regional branches of separate legal entities will become structural subdivisions of the State Property Fund.

Also, the new Law introduces several changes in the work with sanctioned property:

- according to the decision of the HACC, the sanctioned property will be transferred to the SPFU;

- the SPFU will independently make management decisions regarding sanctioned property (privatization, sale, lease or management);

- all received funds will be sent to the Fund for the Elimination of the Consequences of Armed Aggression.

In addition, the Law:

- prohibits sanctioned persons and citizens of aggressor countries from holding positions of heads of state-owned enterprises and members of supervisory boards;

- cancels the procedure for the approval of heads of state-owned enterprises, which are under the management of the SPFU, with local authorities;

- removes restrictions on the term of state property lease contracts for the period of martial law.

The main provisions of the Law enter into force on the day following its official publication. The provisions regarding sanctioned property — three months after that.