Ukraine parliament moves to accelerate privatization of state-owned assets

What happened

The Kyiv Independent reports that on October 12, Ukraine’s parliament passed the first reading of a draft bill designed to speed up the privatization process for state-owned assets. The bill targets longstanding delays caused by other government bodies failing to promptly transfer assets to the State Property Fund, which is responsible for sales. The proposed law would impose a 20-day deadline on these transfers, after which the Fund could assume control directly if the deadline is missed.

Dmytro Natalukha, chairman of the State Property Fund, told the Kyiv Independent that the bill aims to improve efficiency, reduce preparation costs, and ultimately generate additional revenue for the state budget. It also proposes creating a state-owned consulting firm to support asset preparation and marketing, with fees covered by buyers upon successful sales. This addresses chronic bottlenecks that have previously caused months- or years-long delays under current rules without transfer deadlines.

Privatization is a key condition set by Western partners, including the IMF and World Bank, for ongoing financial aid to Ukraine. The government has set a goal of raising $295 million through privatization by the end of 2026. However, the State Property Fund has faced challenges such as staffing shortages and low salaries, which have hampered efforts to attract foreign investors amid the risks related to ongoing war, poor asset conditions, and legal uncertainties.

Known from the source

• Ukraine’s parliament approved the first reading of a bill on Oct. 12 to accelerate privatization of state-owned assets.
• The bill introduces a 20-day transfer deadline for state bodies to hand over assets to the State Property Fund.
• If transfers are overdue, the Fund may take control of assets directly.
• Proposal includes a state-owned consulting firm to assist asset preparation for sale, funded by a 5% fee paid by buyers.
• Privatization is a required reform condition for financial aid from the IMF and World Bank.

What remains unclear

Parliament also passed other related legislation in the same session, including measures to allocate export control revenue from military and dual-use goods processing directly to the Defense Ministry. Half of these funds would fund procurement and repair of weapons, the other half to personnel allowances. These moves underline the urgent need to bolster funding for Ukraine’s defense and fiscal stability in light of its severe budget shortfall caused by the war.

What remains unclear: Verify final outcome and timing of the bill’s second reading and adoption. Confirm operational details and independence of the proposed state-owned consulting firm. Check for additional official statements on expected investor reactions and risk mitigation measures. Clarify legal framework for asset sales especially those affected by war-related damages or lawsuits.

Evidence note

Outside Brief has kept this brief source-led and attributed. Claims should be read alongside the original source linked below.

Original source: Kyiv Independent. Open the source.