The "large-scale" mode is turned on

Serhiy Dzis, partner of SDM Partners Law Firm, comments on the main novelties provided for by Law No. 3137-IX on the restoration of large-scale privatization.

On June 20, President Volodymyr Zelenskyi signed Law No. 3137-IX (draft law No. 8250), which restores large-scale privatization.

Among the main novels of the document:

  1. The Chairman of the State Property Fund of Ukraine (SPFU) will have the right to independently appoint and dismiss deputies. 12 regional branches – separate legal entities will become structural subdivisions of the Fund.
  2. The sanctioned property will be transferred to the SPFU according to the decision of the High Anti-Corruption Court of Ukraine, which will independently make management decisions regarding its privatization, sale, lease or management. All funds received will be sent to the Fund for the Liquidation of the Consequences of Armed Aggression;
  3. The procedure for the approval of the directors of state-owned enterprises, which are under the management of the SPFU, with local authorities is canceled;
  4. It is prohibited for sanctioned persons and citizens of aggressor countries to hold the positions of heads of state-owned enterprises and members of supervisory boards;
  5. Removal of the limitation on the validity period of lease contracts of state property for the period of martial law.

We will remind that the objects of large-scale privatization include assets worth more than UAH 250 million. Currently, among the objects that are being or will be prepared for privatization:

  1. Zaporizhe Titanium-Magnesium Combine (ZTMC),
  2. Zaporizhze Aluminum Combine (ZALK),
  3. Demurinsky GZK LLC,
  4. Ocean Plaza Shopping Center (66.65% of shares),
  5. Mykolaiv Alumina Plant (NGZ).