In January, Ukraine’s parliament passed a new privatization law that simplifies the process of selling off state-owned companies. The law reduces existing categories of assets (e.g. buildings, land) and equity (company ownership) into small and large objects. Small objects are assets or companies worth less than Hr 250 million (about $1 million). Everything else is defined as large privatization. The government will retain ownership of some assets deemed strategic and will undertake some restructuring, most importantly at the state gas company Naftogaz.
Almost all small privatization objects are to be sold through ProZorro, an online public procurement platform. The idea is that changing the process by which these assets and companies are sold will improve transparency and introduce market pricing by through online bidding. The government also hopes to greatly accelerate privatization activity.
