Parliament made another step to fight corruption in privatization of state property.

The MPs adopted the draft law No. 2319a-д “On Amendments to Some Laws of Ukraine” in the first reading. If the document is successful in a second voting and signed by the president, the country will be able to seriously move forward in the fight against corruption and attracting investment.

Inter alia, the draft involves advisers on a competitive basis to the process of privatization. This step will help to bring the privatization procedures in line with the international standards and have a positive impact on the investment climate in the country. The list of documents that a potential buyer submits to the competition will have to include information on his financial and property status. Moreover, there will be responsibility for incompleteness of the information. This will prevent from participation in the procedure of front companies, which are rapidly becoming bankrupts, and other unfair investors. Applicants will also be obliged to prove their right for acquisition of state facilities. However, for now it is not clear how this procedure will look like.

The law bans the participation of legal entities, the beneficiaries of which have residents of countries recognized as aggressors by the parliament.

The new law, like the previous, revokes the compulsory pre-sale of 5-10% of shares of state enterprises of certain groups prior to the start of the competition through the exchange. Earlier the market price of a facility was determining by this method.