The draft resolution of the Cabinet of Ministers of Ukraine. The procedure of alienation of objects of state ownership.

The President of Ukraine to actively promote the principles of transparency in managing public property. Supporting the policy of the President, Ministry of economic development and trade of Ukraine has prepared a draft resolution of the Cabinet of Ministers of Ukraine "Some issues of disposal of state property objects" and the corresponding Order of alienation of objects of state ownership. The Resolution applies to the objects of state property, property of state enterprises and business companies, whose authorized capital the share of state ownership exceeds 50 percent.
As noted in the Ministry, preparation of the normative act due to a number of problems:
  • there is no single transparent and effective system of implementation of state property sale of state property is carried out by a large number of exchanges, each operating according to its own rules;
  • due to the lack of a unified system of state asset sales, the accumulation of a large number of illiquid and non-core assets in the public sector, the contents of which spent considerable sums of state funds and state-owned enterprises are deprived of the opportunity to update its technical resources;
  • the organizers of the auction do not exist technical and professional capacity to ensure the effective conduct of electronic auction and to maximize proceeds from the disposition of state property. As a result, companies and investors lack confidence in the transparency, integrity and effectiveness of the process of such implementation;
  • the existing process of implementation of the state property is characterized by significant inefficiency, namely, the asymmetry of information, technical problems with the access to trading, inequality of access to specific trades, which mainly involve only the specific clients of the auction organizer, and the like;
  • the General slowness of the processes associated with the implementation of the state property also by the strong institutional memory of market participants and the resistance of the existing system to broaden the participation and increase the number of trades;
  • before bidding on the sale of state property limited the access of foreign investors and, accordingly, resources that can be invested in the economy of Ukraine;
  • the lack of effective control and monitoring on the results of trading leads to a lack of intelligence regarding their effectiveness.
The procedure of alienation of objects of state property (hereinafter the Procedure) provides a mechanism and methods of alienation of state property.
Here are some of the provisions of the Order:
  • the decision on granting consent to the disposal of property accepted by the relevant regulator. The state property Fund approves the alienation of property according to certain powers;
  • the starting price of property is established at the level of its carrying value. And in the absence of the carrying value of the assets proposed for sale, such cost is determined on the basis of the value determined in accordance with the Method of valuation of property that is approved by the Cabinet of Ministers of Ukraine;
  • alienation of property is carried out exclusively through electronic auctions in the electronic trading system ( ETS);
  • an electronic auction is conducted in accordance with the contract concluded between the auction organizer and operators of electronic platforms;
  • in auction can participate the participants that submitted closed bids;
  • the Protocol on the results of the electronic auction (without a signature) please refer to the ETS automatically on the expiry date of the electronic auction;
  • the winner of the electronic auction is the participant who submitted the highest price offer per lot, in the case when they made at least one step e-auction.
In General, the Order completely enough regulates the entire chain initiation, agreement, alienation of property, the conduct of the auction and determination of the auction results, as well as the responsibilities of all actors of the process of alienation.
We will monitor the progress of adoption of this regulation and Express hope for its positive impact on the development of the economic situation in the country.