FEDERAL LAW OF THE RUSSIAN FEDERATION

of December 21, 2001 No. 178-FZ

About privatization of the state-owned and municipal property

Accepted by the State Duma of the Russian Federation on November 30, 2001

Approved by Council of the Russian Federation on December 5, 2001

Chapter I. General provisions

Article 1. Concept of privatization of the state-owned and municipal property

Privatization of the state-owned and municipal property is understood as paid property acquisition, being in property of the Russian Federation (further - federal property), subjects of the Russian Federation, municipalities, in property of physical and (or) legal entities.

Article 2. Basic principles of privatization of the state-owned and municipal property

1. Privatization of the state-owned and municipal property is based on recognition of equality of buyers of the state-owned and municipal property and openness of activities of public authorities and local government bodies.

2. The state-owned and municipal property is alienated in property of physical and (or) legal entities only on paid basis (for a fee or by means of transfer to the state-owned or municipal property of shares of joint-stock companies in which authorized capital the state-owned or municipal property, or shares, is brought by share in the authorized capital of the economic societies created by transformation state and municipal unitary enterprises).

3. Privatization of municipal property is performed by local government bodies independently according to the procedure, provided by this Federal Law.

Article 3. Coverage of this Federal Law

1. This Federal Law governs the relations arising in case of privatization of the state-owned and municipal property and the related relations on management of the state-owned and municipal property.

2. Operation of this Federal Law does not extend to the relations arising in case of alienation:

1) lands, except for alienations of the parcels of land on which real estate objects, including property complexes are located;

2) natural resources;

3) the state and municipal housing stock, except for the premises of housing stock of the Russian Federation specified in article 30.4 of this Federal Law;

4) state reserve;

5) the state-owned and municipal property which is outside the territory of the Russian Federation;

6) the state-owned and municipal property in the cases provided by international treaties of the Russian Federation;

7) gratuitously in property of the religious organizations for use in the corresponding purposes of cult buildings and constructions with the parcels of land relating to them and other property of religious appointment which is in the state-owned or municipal property, and also it is non-paid in property of the all-Russian public organizations of disabled people and the organizations which single founders are the all-Russian public organizations of disabled people, the parcels of land which are in the state-owned or municipal property and on which buildings, structures and constructions which are in property of the specified organizations are located;

8) the state-owned and municipal property in property of the non-profit organizations created when transforming state both municipal unitary enterprises, and the state-owned and municipal property transferred to the state corporations and other non-profit organizations as property fee of the Russian Federation, subjects of the Russian Federation, municipalities;

9) state and municipal unitary enterprises, the public and local government offices of the property assigned to them in economic maintaining or operational management;

10) the state-owned and municipal property based on the judgment;

11) shares in the origin cases provided by the Federal Laws at the Russian Federation, subjects of the Russian Federation, municipalities of the right to require the redemption their joint-stock company;

12) shares of joint-stock company, and also securities converted into shares of joint-stock company, in case of their redemption according to the procedure, established by Articles 84. 2, 84.7 and 84.8 Federal Laws of December 26, 1995 No. 208-FZ "About joint-stock companies";

13) the property transferred to the center of historical heritage of the President of the Russian Federation who stopped execution of the powers;

14) the parcels of land, other real estate units which are in federal property concerning which No. 161-FZ authorized according to the Federal Law of July 24, 2008 "About assistance to development of housing construction, to creation of objects of tourist infrastructure and other development of the territories" the Government of the Russian Federation interdepartmental collegiate organ makes the decision which is stipulated in Item 2 parts 1 of article 12 of the specified Federal Law and according to which single institute of development in the housing sphere, the organization for tourism development perform functions of the agent of the Russian Federation;

15) federal property according to the decisions of the Government of the Russian Federation made for the purpose of creation of conditions for investment attraction, stimulation of development of the stock market, and also upgrade and technology development of economy, development of small and medium business in the Russian Federation including in connection with implementation of activities of "Federal Corporation on Development of Small and Medium Business" joint-stock company based on the Federal Law of July 24, 2007 No. 209-FZ "About development of small and medium business in the Russian Federation" as institute of development in the sphere of small and medium business".

16) the property transferred to the possession of the Russian scientific fund as property fee of the Russian Federation.

17) the personal estate (except for shares and shares in the authorized (share) capital of economic societies and partnerships) turned into property of the state in accordance with the legislation of the Russian Federation or which arrived in property of the state according to the procedure of inheritance.

18) federal property in case of its exchange for the Olympic venues of federal importance which are in private property, determined according to the Federal Law "About the Organization and about Holding the XXII Olympic Winter Games and the XI Paralympic Winter Games of 2014 in the City of Sochi, Development of the City of Sochi as Mountain Resort and Modification of Separate Legal Acts of the Russian Federation" and created in pursuance of the Olympic venues concluded with the State corporation on construction and development of the city of Sochi as the mountain resort of agreements on the organization of construction of Olympic venues of federal importance.

19) the property transferred to the possession of managing company as property fee of the Russian Federation, the subject of the Russian Federation, the municipality according to the procedure, established by the Federal Law "About the Territories of the Advancing Development in the Russian Federation";

20) securities at the organized biddings which are carried out according to the Federal Law of November 21, 2011 No. 325-FZ "About the organized biddings" and based on decisions of the Government of the Russian Federation;

21) the property belonging on the right of economic maintaining, permanent (termless) use, lease to the federal state unitary enterprise "Russian Post" by its reorganization based on the Federal Law "About Features of Reorganization of the Federal State Unitary Enterprise "Russian Post", Bases of Activities of Russian Post Joint-stock Company and about Modification of Separate Legal Acts of the Russian Federation";

22) the courts turned into property of the state, and also the property formed as a result of their utilization;

23) arms, ammunition to it, the military and special equipment, spare parts, components and devices to them, explosives, blasting agents, gunpowder, all types of rocket fuel, and also special materials and the special equipment for their production, special equipment of staff of paramilitary organizations, normative and technical products on their production and operation.

Alienation of the state-owned and municipal property specified in this Item is regulated by other Federal Laws and (or) other regulatory legal acts.

3. The property carried by the Federal Laws to objects of the civil laws which turnover is not allowed (to the objects withdrawn from circulation), and also property which according to the procedure, established by the Federal Laws, can be only in the state-owned or municipal property is not subject to privatization.

4. Regulations of the civil legislation are applied to the relations on alienation of the state-owned and municipal property which are not settled by this Federal Law.

5. If other is not determined by this Federal Law, features of participation of subjects of small and medium business in privatization of leasable state-owned or municipal real estate are established by the Federal Law.

6. Features of participation of notaries and notarial chambers in privatization of property which is in property of the subject of the Russian Federation or municipal property and on which the decision on sale at auction or tender is made can be established in Bases of the legislation of the Russian Federation on notariate of February 11, 1993 No. 4462-1.

Article 4. Legislation of the Russian Federation on privatization

1. The legislation of the Russian Federation on privatization consists of this Federal Law and other Federal Laws and other regulatory legal acts of the Russian Federation accepted according to it.

Regulations about the privatizations of the state-owned and municipal property containing in other Federal Laws shall not contradict this Federal Law.

2. The legislation of subjects of the Russian Federation on privatization consists of the laws of the subjects of the Russian Federation on privatization of state-owned property adopted according to this Federal Law, and other regulatory legal acts of subjects of the Russian Federation accepted according to them.

3. Privatization of municipal property is performed by local government bodies independently in accordance with the legislation of the Russian Federation about privatization.

Article 5. Buyers of the state-owned and municipal property

1. Any physical persons and legal entities, except for can be buyers of the state-owned and municipal property:

state and municipal unitary enterprises, public and local government offices;

legal entities in whose authorized capital the share of the Russian Federation, subjects of the Russian Federation and municipalities exceeds 25 percent, except cases, stipulated in Article the 25th this Federal Law;

legal entities whose place of registration is the state or the territory included in the list of the states and the territories which are providing preferential tax regime of the taxation and (or) not providing disclosure and provision of information when carrying out financial transactions (offshore zones) and who do not perform disclosure and provision of information on the beneficiaries, beneficial owners and the controlling persons according to the procedure established by the Government of the Russian Federation approved by the Ministry of Finance of the Russian Federation;

the paragraph the fifth ceased to be valid according to the Federal Law of the Russian Federation of 31.05.2018 No. 122-FZ

The concept "controlling person" is used in the same value, as in article 5 of the Federal Law of April 29, 2008 No. 57-FZ "About procedure of foreign investments in the economic societies having strategic importance for ensuring defense of the country and safety of the state". The concepts "beneficiary" and "beneficial owner" are used in the values specified in article 3 of the Federal Law of August 7, 2001 to No. 115-FZ "About counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing".

The restrictions set by this Item do not extend to owners of the real estate objects which are not unauthorized constructions and located on the parcels of land relating to the state-owned or municipal property in case of acquisition by the specified owners of these parcels of land.

2. The restrictions of participation in the civil relations of separate categories of physical persons and legal entities set by the Federal Laws for the purpose of protection of bases of the constitutional system, morality, health, the rights and legitimate interests of other persons, ensuring defense capability and safety of the state are obligatory in case of privatization of the state-owned and municipal property.

3. Joint-stock companies, limited liability companies cannot be buyers of the shares, the shares in the authorized capital privatized according to this Federal Law.

4. If subsequently it will be determined that the buyer of the state-owned or municipal property had no legitimate right for its acquisition, the corresponding transaction is insignificant.

Article 6. Competence of the Government of the Russian Federation, public authorities of subjects of the Russian Federation and local government bodies of the sphere of privatization

1. For realization of single state policy in the sphere of privatization the Government of the Russian Federation:

Represents 1) to the President of the Russian Federation for approval of the offer on forming of the list of the strategic companies and joint-stock companies including:

the federal state unitary enterprises performing production (works, services), the defense capability having strategic importance for providing and safety of the state, protection of morality, health, the rights and legitimate interests of citizens of the Russian Federation (further - the strategic companies);

joint-stock companies which shares are in federal property and participation of the Russian Federation in management of which provides strategic interests of the state, defense capability and safety of the state, protection of morality, health, the rights and legitimate interests of citizens of the Russian Federation (further - strategic joint-stock companies);

2) represents to the President of the Russian Federation offers on entering into the list of the strategic companies and strategic joint-stock companies of the changes concerning:

structure of the federal state unitary enterprises from among the strategic companies, including for their subsequent privatization (transformation to joint-stock companies);

need and extents of participation of the Russian Federation in joint-stock companies from among strategic joint-stock companies, including for the subsequent privatization of shares of the specified joint-stock companies;

3) is approved by the forecast plan (program) of privatization of federal property for planning period;

3. 1) is established by procedure for forming and approval of lists of federal property which privatization is performed without inclusion in the forecast plan (program) of privatization of federal property for planning period, and also modification of the specified lists;

3. 2) ceased to be valid according to the Federal Law of the Russian Federation of 20.03.2025 No. 35-FZ

4) represents to the State Duma of Federal Assembly of the Russian Federation (further - the State Duma) the report on results of privatization of federal property for last year;

5) publishes regulatory legal acts concerning privatization;

6) directs work of federal executive bodies concerning privatization of federal property;

7) makes decisions on conditions of privatization of federal property;

8) exercises control of privatization of federal property;

8. 1) makes the decision on approval of the list of legal entities for the organization on behalf of the owner of sale of the privatized state-owned or municipal property and (or) implementation of functions of the seller of such property;

8. 2) establishes for the purposes of this Federal Law additional requirements to operators of electronic platforms which list is approved by the Government of the Russian Federation according to the Federal Law of April 5, 2013 No. 44-FZ "About contractual system in the sphere of purchases of goods, works, services for ensuring the state and municipal needs", and to functioning of electronic platforms;

9) performs other powers provided by this Federal Law.

The government of the Russian Federation the decision has the right to charge to legal entities to organize on behalf of the Russian Federation in accordance with the established procedure sale of the privatized federal property and (or) to perform functions of the seller. In the specified decision of the Government of the Russian Federation privatizeable federal property, actions of these legal entities, the size and payment procedure by it remunerations are determined. At the same time the amount of remuneration of the specified legal entities does not enter selling price of federal property and is subject to payment at the expense of the privatized federal property of means of the winner of auction, or the means of person recognized as the single participant of auction paid over selling price in the case established by the paragraph the second Item 3 of article 18 of this Federal Law, or means of the winner of sale by means of public offer, either means of the winner of tender, or means of the buyer acquiring property by implementation of the privilege of purchase in the cases provided by the Federal Law.

According to the special order of the Government of the Russian Federation from his name of function selling the privatized federal property can perform specialized public institution or specialized public institutions.

Features of implementation by federal executive bodies of powers in case of privatization of property of the federal state unitary enterprises of atomic power industrial complex of the Russian Federation and shares of joint-stock companies of the organizations of atomic power industrial complex of the Russian Federation are established by the Federal Law "About Features of Management and the Order of Property and Shares of the Organizations Performing Activities in the field of Use of Atomic Energy and about Modification of Separate Legal Acts of the Russian Federation".

To feature of privatization of property of the federal state unitary enterprises transformed to joint-stock companies which 100 percent of shares is in federal property and Rostec as property fee of the Russian Federation is transferred to the State corporation on assistance to development, production and export of high-technology industrial output, are established by the Federal Law of November 23, 2007 No. 270-FZ "About the State corporation on assistance to development, production and export of high-technology industrial output Rostec.

Features of privatization of property of the state unitary enterprises which are subject to transformation to joint-stock companies according to the Federal Law "About the State corporation on space activities Roskosmos, and also being in federal property of the shares which are subject to transfer of the State corporation on space activities Roskosmos as property fee of the Russian Federation or to joint-stock companies of the State corporation on space activities Roskosmos as contribution of the Russian Federation to their authorized capital according to decisions of the President of the Russian Federation are established by the Federal Law "About the State corporation on space activities Roskosmos.

2. Competence of public authorities of subjects of the Russian Federation and local government bodies is determined by the laws and other regulatory legal acts of subjects of the Russian Federation and legal acts of local government bodies respectively.

3. Public authorities of subjects of the Russian Federation and local government bodies independently perform functions selling respectively state-owned and municipal property, and also the decisions charge to the legal entities specified in subitem 8.1 of Item 1 of this Article to organize on behalf of the owner in accordance with the established procedure sale of the privatized property which is in property of subjects of the Russian Federation or municipalities and (or) to perform functions of the seller of such property.

Chapter II. Planning of privatization of the state-owned and municipal property

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