On January 18, 2018, the Law “On the Privatization of State and Communal Main” entered into force. The adoption of this Law is one of the necessary conditions for Ukraine to receive a tranche from the International Monetary Fund. The main purpose of the standard is to regulate the legal, economic and organizational bases for the privatization of state and municipal property and property owned by the Autonomous Republic of Crimea.

In particular, the new Law regulates:

• establishment of a simplified classification of privatization objects;

• defining requirements for buyers of privatization objects and limiting their participation in tenders;

• introduction of responsibility for the incompleteness and inaccuracy of the submitted documents;

• expansion of the list of objects that can be privatized.

According to the provision of the Law, there are certain conditions under which not everyone can participate in bidding for the acquisition of national enterprises. Thus, the aggressor country is forbidden to enter the process of privatization of property in Ukraine.

Privatization objects

One of the key innovations is the simplified system of separation of privatization objects into large and small. Such a step involves ensuring a rational and effective approach to the privatization process.

The objects of small privatization include:

1) unified property complexes of state and municipal enterprises;

2) separate property;

3) objects under construction;

4) social and cultural facilities;

5) shareholdings of the joint stock company;

6) other objects that do not relate to objects of large privatization.

The objects of large-scale privatization include objects of state and communal ownership, in the authorized capital of which more than 50% of the shares are state-owned, and the value of assets for the last reporting year is above UAH 250 million.

The list of properties to be privatized in the current year has already been approved by the State Property Fund of Ukraine. The list includes up to 700 positions from different regions of the country. The stated lots include household objects, production, premises, material values, transport and the like. Their implementation is planned on the project platform ProZorro. Sales.

Process and prospects

The auction can have several stages and will occur as follows: for example, an object whose initial value is 100 thousand UAH is put up for classical trading with a price increase. In the absence of interested buyers, in the next round, the starting price is reduced by 25%, and if in this case the object was not sold, its price again decreases by 25%. Then begins the so-called "Dutch auction", according to which the initial price of the lot decreases until someone acquires it.

This principle of trading successfully showed itself last year. Thanks to the e-privatization process in 2017. The budget received 5.3 mlpd. UAH, which is twice the figure of 2016. At the same time, Vitaly Trubarov, acting chairman of the State Property Fund, in his interview, said he was expecting profit from privatization in 2018 in the amount of 21 billion UAH.

Summing up, we can say that qualitative changes in legislation, automation and simplification of procurement processes, the interaction of government and business contributes to the country's entry into a new stage of economic development.