Today the President of Ukraine signed amendments* to the Ukrainian privatisation law. The amendments will enable the beginning of the privatisation of large state-owned companies.
The most notable changes introduced to the privatisation procedure are as follows:
- elimination of a requirement by which up to 10% of the shares of a state-owned company had to be sold on a Ukrainian stock exchange prior to the tender;
- prohibition for Russian companies and affiliates of Russian companies to participate in privatisation;
- prohibition for sanctioned individuals and legal entities to participate in privatisation; and
- possibility to provide for international arbitration in sale and purchase agreements signed as part of the privatisation procedure.
The amendments will become effective on the date following their official publication. It is likely that the first privatisation tenders will be announced shortly after that.
*The Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine (Regarding Clarification of Certain Provisions)” dated 16 February 2016.