Ukraine’s legal framework for public-private cooperation projects was streamlined by the adoption of the Law of Ukraine “On Concessions” in 2019, which was developed in accordance with the best international practices.
According to the new procedure concessions can be initiated by public authorities, state enterprises and investors themselves. In order to initiate concession tender potential investors should file a concession proposal including concept note and feasibility study prepared according to the Methodology of analysis of effectiveness of public-private partnership to the authority managing a particular asset.
The legislation governing privatization in Ukraine has been substantially updated in 2018 in order to invigorate this long-awaited process, in particular, through foreign direct investment. Additionally, the list of more than 1000 assets prohibited from privatization is now abolished by the parliament.
Some of the benefits of new regulation for investors:
- transparency in terms of availability of information on all assets available for privatization and procedure which includes open bidding through an online platform and participation of independent experts;
- option to conclude sales agreement under English law.
All assets available for privatization are included in the online catalogue and divided into two groups:
- Small (worth less than 250 mln UAH) which can be bought through an online platform ProZorro.Sales which provides for the highest level of transparency of privatization procedure;
- Large (worth more than 250 mln UAH) which are sold with the assistance of independent professional advisers preparing the asset for privatization and seeking potential investors for the auction.