New Privatization Law adopted

The new Privatization Law entered into force on 7 March 2018. It simplifies the privatization of almost 3.500 State-owned enterprises, extends its scope and brings the process to international standards. The law includes certain provisions aimed indirectly at foreign investors, such as arbitration clauses in SPAs (with the Arbitration Institute of the Stockholm Chamber of Commerce as a default forum) as well as governing law clauses relating to laws of England and Wales.

The law specifies sectors and entities that may not be privatized, including those necessary for the fulfillment of the State basic functions, defense of the State, and constituting the material basis of Ukraine's sovereignty. Furthermore, the law provides that buyers of privatized properties or enterprises may be foreign citizens and legal persons incorporated abroad, with exclusion of buyers with opaque ownership structures, aggressor states' authorities or legal persons under their control as well as legal persons, in which 10% of the shares are owned by a resident of these states.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • Governmental Portal , Parliament approved Government's bill on privatization of state property, https://www.kmu.gov.ua/en/news/250543063, 28 Jan 2018
  • Verkhovna Rada, Law On Privatization of State and Communal Property, http://zakon5.rada.gov.ua/laws/show/2269-19/print1517481056409678, 28 Jan 2018
  • CMS / Dentons, Ukraine: New Privatisation Law Came into Force, http://www.cms-lawnow.com/ealerts/2018/03/ukraine-new-privatisation-law-came-into-force, 28 Mar 2018