The business discussed the damage assessment methodology with the State Property Fund

26/ 07/ 2022

In the conditions of military aggression and active hostilities, the question of the Methodology for determining damage and the number of losses due to the destruction and damage of property is of particular importance for business. Thus, the State Property Fund of Ukraine and a number of other ministries and departments are working on methods of determining damage in various areas. In addition, strategic work on damage assessment issues is also being conducted within the framework of the National Recovery Council of Ukraine. So it is extremely important for businesses to understand how these methodologies will fit together and how and where to better deliver their offerings. The mentioned issues were discussed at an extended meeting of the EBA Committee on Reconstruction of Ukraine with representatives of the Property Fund, in particular, acting head Olga Batova. The representatives of the Fund explained that an analytical document was developed within the framework of the National Reconstruction Council, the purpose of which is a comprehensive assessment of the amount of damage caused. At the same time, the ministries and departments, in accordance with Government Resolution No. 326, within their competencies, are working on procedures for determining the damage caused to Ukraine as a result of military aggression. In particular, the Fund, together with the Ministry of Economy of Ukraine, is working on an object-specific Methodology for determining damage and the amount of damage caused to enterprises, institutions and organizations of all forms of ownership, as well as lost profits due to the impossibility or obstacles in the conduct of the economic activity. Thus, the participants of the meeting agreed that the representatives of the Fund will send the latest version of the Methodology so that the representatives of the Association can familiarize themselves with it and, if necessary, make suggestions. Also, the participants of the meeting discussed the prospects of adoption and the main innovations proposed by a number of draft laws in the field of privatization and state property management. In particular, considerable attention was paid to the draft Law No. 7451 on amendments to the Law On the Privatization of State and Communal Property, which may be considered by the Parliament in the second reading in the near future and, if adopted, may simplify the process of relocation of enterprises to relatively safer regions. In addition, the representatives of the Fund drew attention to the draft Law No. 7386 on the valuation of property, property rights, and professional valuation activities in Ukraine, as well as the draft Law No. 7065 on the termination of state-owned enterprises and offered the representatives of the Association to analyze them and provide, if necessary, their comments. Among other issues, the participants discussed the prospects of adopting the position of the CMU on the peculiarities of leasing state and communal property during martial law, aimed at exempting port operators from rent for the period of blockage of seaports. In particular, business representatives were informed that the relevant project of the resolution had already been submitted by the Fund for review and approval by the CMU. The European Business Association is grateful to the State Property Fund for a constructive meeting and we hope that the agreements reached will be implemented in the near future.

The mentioned issues were discussed at an extended meeting of the EBA Committee on Reconstruction of Ukraine with representatives of the Property Fund, in particular, acting head Olga Batova. The representatives of the Fund explained that an analytical document was developed within the framework of the National Reconstruction Council, the purpose of which is a comprehensive assessment of the amount of damage caused. At the same time, the ministries and departments, in accordance with Government Resolution No. 326, within their competencies, are working on procedures for determining the damage caused to Ukraine as a result of military aggression. In particular, the Fund, together with the Ministry of Economy of Ukraine, is working on an object-specific Methodology for determining damage and the amount of damage caused to enterprises, institutions and organizations of all forms of ownership, as well as lost profits due to the impossibility or obstacles in the conduct of the economic activity. Thus, the participants of the meeting agreed that the representatives of the Fund will send the latest version of the Methodology so that the representatives of the Association can familiarize themselves with it and, if necessary, make suggestions.

Also, the participants of the meeting discussed the prospects of adoption and the main innovations proposed by a number of draft laws in the field of privatization and state property management. In particular, considerable attention was paid to the draft Law No. 7451 on amendments to the Law “On the Privatization of State and Communal Property”, which may be considered by the Parliament in the second reading in the near future and, if adopted, may simplify the process of relocation of enterprises to relatively safer regions. In addition, the representatives of the Fund drew attention to the draft Law No. 7386 on the valuation of property, property rights, and professional valuation activities in Ukraine, as well as the draft Law No. 7065 on the termination of state-owned enterprises and offered the representatives of the Association to analyze them and provide, if necessary, their comments.

Among other issues, the participants discussed the prospects of adopting the position of the CMU on the peculiarities of leasing state and communal property during martial law, aimed at exempting port operators from rent for the period of blockage of seaports. In particular, business representatives were informed that the relevant project of the resolution had already been submitted by the Fund for review and approval by the CMU.

The European Business Association is grateful to the State Property Fund for a constructive meeting and we hope that the agreements reached will be implemented in the near future.