On September 16, Chamber held a Meeting with Mr. Ihor Bilous, Head of the State Property Fund of Ukraine and Mr. Adomas Audickas, Senior Advisor to the Minister of Economic Development and Trade.
Opening the meeting, Vitaliy Radchenko, Chamber Energy Committee Co-Chair, CMS Cameron McKenna thanked all participants for their interest to the meeting and proposed Mr. Igor Bilous to brief the audience about the plans of the Fund in a sphere of privatization, opportunities for foreign investors, as well as the current projects of the Fund which are already in operation.
Igor Bilous noted that if by the end of the year the necessary legislative changes are adopted, privatization of large state enterprises will start from the beginning of 2016. In particular, speaker noted that if the Verkhovna Rada will vote for the new Draft Law #2319-a on improving the process of privatization, Odessa Portside Plant will be put up for privatization at the end of the year, and in January and February 2016 an open auction will be held. Mr. Bilous stated that privatization of a number of power companies and "Centrenergo" will be the next step in the process.
According to Igor Bilous, the existing rules of law do not allow properly evaluate facilities for transparent privatization and attracting investors. That is why the above mentioned Law was initiated by the Cabinet of Ministers which cancels compulsory sale of shares exchanges 5-10% of companies 'G' before their privatization, prohibits participation in the privatization of Ukrainian companies that are under sanctions or registered in offshore jurisdictions, establishes the procedure for determining the origin of the funds and their beneficiaries companies, and simplifies the procedure for the appointment of qualified counselors for effective evaluation and sale of state property.
Mr. Bilous also noted that the organization of transparent and effective privatization by the end of the year, Fund needs to define the financial, technical consultants and lawyers. The Fund already has agreements with USAID, which allocates considerable resources to prepare the privatization of energy facilities, including the selection of consultants and conducting due diligence. With regard to the privatization of Odessa Portside Plant, the team of Igor Bilous is completing negotiations with investment bank.
Also, according to Igor Bilous, it is planned to submit to the Verkhovna Rada a new Draft Law on the evaluation and assessment activities, and changes to the Law of Ukraine on lease of state and municipal property, which unlike envisage indexation.
Adomas Audickas, Senior Advisor to the Minister of Economic Development and Trade, also informed participants about current activities of the Ministry towards privatization and stressed that the most effective solution on objects that are currently state-owned, will be selling them to private investors.
We would like to encourage all interested Members to express their interest in privatization sphere as well as providing input in this topic to Nataliya Gotvianska, Chamber Policy Officer (Committees).