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Law resuming large-scale privatisation in Ukraine signed by the President

07/ 05/ 2021
  On 29 April 2021, the President of Ukraine signed the Law of Ukraine “On Amendment to Section V ‘Final and Transitional Provisions’ of the Law of Ukraine on the Privatisation of State and Municipal Property for the resumption of auctions for the sale of large-scale privatisation objects” (the “Law”), which removes the ban on large-scale privatisation in Ukraine enacted a year ago due to the Covid-19 situation. The Law will become effective on the day following its publication. According to Dmytro Sennychenko, the Head of the State Property Fund of Ukraine, the following companies will be the first offered for sale in 2021: United Mining and Chemical Company (one of the worlds largest producers of titanium ore concentrates); First Kyiv Machine-Building Plant (a plant with 35 hectares of land in Kyiv); and President-Hotel (four-star 8,846 sq.m. hotel in downtown Kyiv). In addition to the above-mentioned companies, Odesa Portside Plant (producer of mineral fertilizers), Coal Company “Krasnolymanska” (coal mining and extraction) and Elektrovazhmash (producer of power generators) are expected to attract significant interest from foreign and Ukrainian investors. The sale of these companies is prepared by international and local investment advisers (KPMG, BDO, Pericles and Concorde Capital), who are responsible for taking the necessary measures to find potential investors and will determine the starting price of assets before their sale. For the full list of companies that are objects of large-scale privatisation in Ukraine and information about the privatisation process, please read our Guide on large-scale privatisation in Ukraine (attached). Kinstellar has extensive experience supporting privatisation projects in Ukraine. Our lawyers supported the landmark privatisation of PJSC Odesa Port Plant in 2015–16 and have represented the State Property Fund of Ukraine in this project since 2018. In July of this year, we represented a foreign investor in preparation for the small-scale privatisation of the Dnipro Hotel. We have also been involved in the development of Ukrainian privatisation legislation and are therefore well acquainted with regulatory, corporate, commercial, compliance and other related issues accompanying the privatisation process in Ukraine. We also have extensive experience in competition law and in obtaining merger control approvals for clients when acquiring assets in Ukraine, which is an important step in the privatisation process. For further information please contact: Olena Kuchynska, Managing Partner, at olena.kuchynska@kinstellar.com, Iryna Nikolayevska, Partner, at iryna.nikolayevska@kinstellar.com, or visit our website.

On 29 April 2021, the President of Ukraine signed the Law of Ukraine “On Amendment to Section V ‘Final and Transitional Provisions’ of the Law of Ukraine on the Privatisation of State and Municipal Property for the resumption of auctions for the sale of large-scale privatisation objects” (the “Law”), which removes the ban on large-scale privatisation in Ukraine enacted a year ago due to the Covid-19 situation. The Law will become effective on the day following its publication.

According to Dmytro Sennychenko, the Head of the State Property Fund of Ukraine, the following companies will be the first offered for sale in 2021:

  • United Mining and Chemical Company (one of the world’s largest producers of titanium ore concentrates);
  • First Kyiv Machine-Building Plant (a plant with 35 hectares of land in Kyiv); and
  • President-Hotel (four-star 8,846 sq.m. hotel in downtown Kyiv).

In addition to the above-mentioned companies, Odesa Portside Plant (producer of mineral fertilizers), Coal Company “Krasnolymanska” (coal mining and extraction) and Elektrovazhmash (producer of power generators) are expected to attract significant interest from foreign and Ukrainian investors. The sale of these companies is prepared by international and local investment advisers (KPMG, BDO, Pericles and Concorde Capital), who are responsible for taking the necessary measures to find potential investors and will determine the starting price of assets before their sale.

For the full list of companies that are objects of large-scale privatisation in Ukraine and information about the privatisation process, please read our Guide on large-scale privatisation in Ukraine (attached).

Kinstellar has extensive experience supporting privatisation projects in Ukraine. Our lawyers supported the landmark privatisation of PJSC “Odesa Port Plant” in 2015–16 and have represented the State Property Fund of Ukraine in this project since 2018. In July of this year, we represented a foreign investor in preparation for the small-scale privatisation of the Dnipro Hotel. We have also been involved in the development of Ukrainian privatisation legislation and are therefore well acquainted with regulatory, corporate, commercial, compliance and other related issues accompanying the privatisation process in Ukraine. We also have extensive experience in competition law and in obtaining merger control approvals for clients when acquiring assets in Ukraine, which is an important step in the privatisation process.

For further information please contact:

Olena Kuchynska, Managing Partner, at olena.kuchynska@kinstellar.com,

Iryna Nikolayevska, Partner, at iryna.nikolayevska@kinstellar.com,

or visit our website.

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