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LAW OF UKRAINE

of January 18, 2018 No. 2269-VIII

About privatization of the state-owned and municipal property

(as amended on 30-03-2021)

This Law regulates legal, economic and organizational basis of privatization of the state-owned and municipal property and property belonging to the Autonomous Republic of Crimea.

Section I General provisions

Article 1. Determination of terms

1. In this Law terms are used in such value:

1) the administrator of electronic trading system - the legal entity determined by the Cabinet of Ministers of Ukraine responsible for ensuring functioning of electronic trading system;

2) auction - method of sale of subject to privatization on which the buyer who offered during trading for it the highest price becomes the owner of subject to privatization;

3) auction without conditions - method of sale of subject to privatization on which the buyer who offered during trading for it the highest price without additional terms of sale of subject to privatization becomes the owner of subject to privatization;

4) electronic auction (electronic auction) - auction type in real time on the Internet;

5) auction with lowering of the starting price - method of sale of subject to privatization on which the privatization authority reduces the starting price of subject to privatization in the procedure established by this Law;

6) auction with conditions - method of sale of subject to privatization on which the buyer who offered during trading for it the highest price and undertook obligations to satisfy sales terms of subject to privatization becomes the owner of subject to privatization;

7) auction for method of step-by-step decrease in the starting price and the subsequent submission of price offers - method of sale of subject to privatization on which the starting price of subject to privatization falls step by step during the auction, with the subsequent possibility of additional submission of price offers;

8) auction for method of studying of price offers - method of sale of subject to big privatization by which the starting price of subject to privatization is determined by carrying out studying of demand of potential buyers by privatization authorities (at least two);

9) the redemption - method of sale of subject to privatization to one buyer;

10) the guarantee fee - cash amount which constitutes the part of the starting price of subject to privatization determined as a percentage which is brought by the potential buyer of subject to privatization for ensuring accomplishment of its obligation on participation in auction in the form of money or the bank guarantee;

11) electronic platform - the hardware and software which functions on the Internet connected to the central database and provides to the organizer of auction, potential buyers, participants opportunity to use services of electronic trading system with automatic exchange of information concerning process of holding electronic auctions;

12) electronic trading system - the two-level information and telecommunication system consisting of the central database and electronic platforms which interact via the interface of programming of appendices which is provided in the form of code with open access and determines functionality of electronic trading system. The electronic trading system provides possibility of creation, placement, the publication and exchange of information and the documents in electronic form necessary for holding the auction electronically;

13) single property complex of the state or municipal company, its structural division - all types of property intended for activities of the company, its structural division, the building, construction, the equipment, stock, raw materials, products, rights to claim, debts, and also the right to trademark or other designation and other rights including the rights to the parcels of land;

14) privatization completion - sale of subject to privatization (all shares provided to sale, single property complex, other property) and transition of the property right to such object to the buyer which is drawn up by the order of relevant organ of privatization;

15) information packet - data on the state or municipal company which single property complex is subject to privatization or economic society, shares or shares of which are subject to privatization, in particular about its financial condition, the documents and data necessary and permissions to concentration, sufficient for obtaining, and other data, including information with limited access (except classified and office information) determined by Fund of state-owned property of Ukraine or privatization authority of territorial community for the proposal of the adviser (in case of its attraction);

16) bid increment - the allowance (discount) on which during the auction increase or reduction in price of subject to privatization is performed;

17) classification of subjects to privatization - separation of subjects to privatization by the corresponding criteria for determination of method of privatization;

18) the operator of an electronic trading platform - the legal entity who has the right to use electronic platform and acts according to the agreement signed with the Administrator of electronic trading system whose essential conditions are determined by the Cabinet of Ministers of Ukraine;

19) organizer of auction - Fund of state-owned property of Ukraine, its regional departments, representations in areas and the cities, privatization authorities in the Autonomous Republic of Crimea, privatization authorities of territorial communities or the legal entities involved by them who act according to the agreement signed with state bodies of privatization;

20) privatization authorities - Fund of state-owned property of Ukraine, its regional departments and representations in areas and the cities, privatization authorities in the Autonomous Republic of Crimea, privatization authorities of territorial communities;

21) the plan of share placing - the document approved by the order of privatization authority on Ukraine established by Fund of state-owned property or the decision of local government body to form which determines methods and terms of sale of shares, belonging to the state or territorial community in the authorized capital of economic society;

22) privatization of the state-owned or municipal property (further - privatization) - paid property acquisition, being in the state-owned or municipal property, for benefit of physical persons and legal entities which according to this Law can be buyers;

23) the privatization termination - the decision of privatization authority on the termination of making of any actions directed to privatization (sale) of subject to privatization;

24) the adviser - person who under the contract with privatization authority undertakes obligations on provision of services in the course of privatization of objects of the state-owned and municipal property, including to search of potential buyers of subjects to privatization, with determination of the starting price of subjects to big privatization;

25) the registration fee - cash amount in the amount of 0,2 of minimum wage as of January 1 of the current year - for subjects to small privatization (10 minimum wages - for subjects to big privatization) which is brought for registration of a statement on participation in privatization by the potential buyer of subject to big privatization on the corresponding current account of privatization authorities, and the potential buyer of subject to small privatization - into the corresponding account of the operator of an electronic trading platform who within five working days from the date of holding the auction transfers them into the government or local budget.

The registration fee does not return to the potential buyer, except the cases provided by this Law;

26) decisions on privatization - decisions which are made by privatization authorities on each subject to privatization by the publication of the order;

27) the starting price of subject to privatization - the price with which the biddings on each subject to privatization begin;

28) the central database - set technical and software as a part of databases and the module of electronic auction providing possibility of holding the auction electronically also guarantee equal information access to participants of electronic auction;

29) selling price - the price at which subject to privatization is sold to the buyer by the method determined by this Law.

The term "control" in this Law is used in the value given in the Law of Ukraine "About joint-stock companies", the terms "final beneficial owner (controller)", "owner of essential participation" - in the values given in the Law of Ukraine "About prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction", the term "connected persons" - in the value given in the Tax code of Ukraine.

Article 2. Purpose and principles of privatization

1. Main objective of privatization is acceleration of economic growth, attraction of foreign and internal investments, reduction of share of the state-owned or municipal property in structure of economy of Ukraine by sale of subjects to privatization to the effective private owner.

2. Privatization is performed on the basis of the following principles:

legality;

openness and transparency;

equalities and competitivenesses;

state regulation and control;

sales of subjects to privatization taking into account features of such objects;

protection of the economic competition;

creating favorable conditions for investment attraction;

complete, timely and reliable informing on subjects to privatization and procedure for their privatization;

providing competitive conditions of privatization.

Article 3. Legislation of Ukraine on privatization

1. The legislation of Ukraine on privatization consists of this Law, other legal acts. Industry features of privatization of objects of state-owned property can be established only by the laws.

2. Operation of this Law does not extend to privatization of objects of the state housing stock, including hostels.

3. Operation of this Law does not extend to alienation of the blocks of shares belonging to the state according to the procedure, provided by Articles 65, 65-1, 65-2, 65-3, 68 and 69 of the Law "About Joint-stock Companies".

4. Operation of this Law does not extend to the actions of subjects of management directed to secession of members of limited liability company which participant is the state or territorial community and the size of the state or municipal share in which constitutes 50 or less percent.

5. Privatization (alienation) of the property which is in municipal property is performed by local government bodies according to requirements of this Law.

6. Privatization of lands of the state and municipal companies, organizations and organizations is regulated by the Land code of Ukraine.

Article 4. Subjects to privatization

1. All objects of the right of the state-owned and municipal property, except those which privatization is directly forbidden by this Law and other laws of Ukraine belong to objects of the state-owned and municipal property which are subject to privatization.

2. Except the cases provided by part three of this Article, privatizations the state companies and objects necessary for accomplishment of the main functions by the state, for ensuring defense capability of the state, and objects of the property right of the Ukrainian people, the property constituting material basis of sovereignty of Ukraine, in particular are not subject:

property of public authorities and local government bodies, property of the Armed Forces of Ukraine (military property), the Security Service of Ukraine, the State Border Service of Ukraine, forces of civil protection, Public service of special communication and information security of Ukraine, law enforcement agencies and tax authorities, customs authorities which directly provides accomplishment by the specified bodies of the tasks established by the legislation, property of healthcare institutions of system of the emergency medical care;

subsoil, minerals of nation-wide value, the territory and objects of natural and reserved fund of nation-wide value, water resources, forest resources, other natural resources which are objects of the property right of the Ukrainian people;

systems of creation and preserving gold and foreign exchange reserves;

issued system, property complexes of the companies and organizations providing release and storage of bank notes and securities;

the objects providing with communication bodies of legislative and executive power, including radio television transmitting centers;

property of the National Public Broadcasting Company of Ukraine (NPBCU) and the share which the state owns in the authorized capital of NOTU;

means of government, courier and special communication;

the state registers created and containing at the expense of means of the government budget;

property of the state company "Multimedia Platform of Broadcasting to Foreign Countries of Ukraine" (MP_U);

National Archive Fund, archives (archival organizations), documents from them, the archival divisions, archives departments and libraries, objects of culture, art, including exclusive historical, art, scientific or other cultural value entered in the State register of national cultural property, and also architecture objects, memorial complexes, reserves, parks of national value;

the monuments included in the list of monuments, not privatizeable;

archeology monuments;

monuments to the state part of Museum fund of Ukraine (museum objects, museum collections and museum meetings);

documents of the State library stock of Ukraine;

the initial materials and film copies which are stored in filmofonda;

inventories of the state reserve irrespective of its location;

the companies performing production of objects of space activities;

the paragraph the nineteenth is excluded according to the Law of Ukraine of 02.10.2019 No. 145-IX;

the organizations of education financed from the government budget;

the scientific objects included in the State register of the scientific objects constituting national property, and the scientific institutions included in the State register of scientific institutions to which support of the state is provided;

the nuclear materials, nuclear installations and objects intended for the treatment of radioactive waste which has nation-wide value;

the specially allotted places or objects intended for waste disposal (the location of waste, storages, grounds, complexes, constructions, subsoil plots and so forth) for which use permission to implementation of transactions in the sphere of the address with waste is got;

property of the Public criminal and executive service of Ukraine which directly provides accomplishment of the tasks and functions established by the legislation;

property and materials of the State information geological fund of Ukraine;

property, materials and data of the State kartografo-geodetic fund, land and cartographic materials;

the state standards, other objects providing functioning of the Public metrological service;

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