Open and effective privatization has long been the leader of the list of strategic tasks of the Ukrainian government and embodies the dreams of domestic business. Annually, the Ukrainian state budget suffers from the number of holes committed by unsuccessful projects of state-owned production institutions. In the future, we will examine whether this situation can be solved by the President of Ukraine signing the Law No. 7066 "On the Privatization of State and Communal Property" and make forecasts as to which changes this will lead to.

Privatization-2018

First of all, the signing of the law significantly facilitates the process of privatization. This applies to the documentation and timing of the preparation of the object. The next advantage will be the variability of sales. Now the object can be purchased not only through a ransom and auction, but privatized, provided that it has been in the lease status at the time of signing the Law.

Auctions will now be made subject to a preliminary expert commission, which, before bidding for the privatization object, will perform a material assessment of the individual object. Based on the conclusions of this commission, an objective starting price will be determined. This is a rather important innovation, because overpriced prices for many years have been a factor that frightened international investors.

Dutch auctions in the Prozorro system. Sales

Also, the criteria for "Dutch auctions" will be practiced, where, in the event that the object of privatization for the first time becomes a lot with a previously lowered initial price, it is reduced by 25%, and if the object is put up for sale a second time, its value loses 50 %

This innovation will accelerate the sales of materially disadvantageous assets and promote fruitful trades. These changes will make the process of privatization as honest and open as possible, allowing more foreigners and Ukrainian investors to acquire state ownership. At the same time, it should remain realists and understand: the growth of new investments is possible, but radical economic upheavals wait too early. Unfortunately, for significant changes, GDP growth by 2% is not effective. But this is the first step towards the 25% we need.

What to expect next?

It is clear that there is still a lot of work ahead: it is necessary to finalize the system, resolve all legal conflicts and really open the market for both large and small privatization. It's time to change the look of Ukraine for foreigners from "yesterday" to "now".

The fact that Ukraine represents interests for foreign business is unconditional truth. But the question arises that potential global investors do not know about it. That is why the transparent representation of all information on process automation will help to avoid intrigue and silence from people who have false intentions and increase the likelihood of attracting international contributions. And this, in turn, will put Ukraine's economic condition on its feet.