Ukrainian News Agency reported that President Mr Viktor Yanukovych has signed the law on the privatization state program. The bill was drafted by the State Property Fund with the aim of facilitating optimization of the market share of the public sector, improving the efficiency of the economy, and enhancing the competitiveness of the economy.

The law defines the basic principles and objectives of privatization in the country during the period of 2012-2014 (mass privatization of assets combined with an individual approach to the sale of strategic enterprises, privatization of assets together with the land plots on which they are located, reduction of restrictions during privatization, and involvement of investors that are interested in long term development of enterprises in this process). The program is to be implemented in three phases.

In the first half of 2012, the program provides for creation of the necessary legal and institutional frameworks for its implementation, as well as for the privatization of strategic enterprises or monopolies on an individual basis.

In the second half of 2012 and in 2013, the program provides for mass sale of the small and medium sized objects remaining in the hands of the state together with the land plots on which they are located, completion of the sale of the enterprises whose privatization began before the adoption of this program, and completion of the certificate of privatization.

In 2014, the program provides for completion of privatization as a mass socio economic process and refocusing on management of the remaining state property.

A controlling stake in an asset may be sold with determination of post-privatization conditions for use of the asset or the state may retain the controlling stake in an asset while selling the remaining shares in small stakes on the stock market.

In addition, the program provides for the possibility of selecting advisers on a competitive basis to prepare for privatization of such enterprises.

The program also provides for provision of guarantees to investors through establishment of exclusive conditions, non fulfillment of which may prompt the state to initiate return of ownership of the privatized asset.

The program projects the size of the revenues from privatization and management of state property during the period of 2012-2014 at UAH 40 to UAH 60 billion.

As Ukrainian News earlier reported, the parliament adopted the first reading of the privatization program for 2011-2014 by 243 votes on December 20th 2011.

(Sourced from Ukrainian News Agency)