State Property Fund of Ukraine
In 1994 the Decree of the President of Ukraine No. 56 “On Unified System of Privatization Institutions in Ukraine” was adopted. This Decree practically formed the modern system of privatization institutions. The Fund is run by the Head appointed and replaced by the President of Ukraine upon approval of the Verkhovna Rada (Parliament) of Ukraine. Since October 1998 the Fund has been headed by Mr. Oleksandr Bondar.
According to the Decree of the President of Ukraine “On Changes in the System of Central Bodies of Executive Power of Ukraine” No. 248/99 from 13.03.99 the State Property Fund of Ukraine is included in the central bodies of executive power.
According to the Temporary Regulation on SPFU the State Property Fund of Ukraine reports to the Verkhovna Rada (Parliament) of Ukraine. In its activity the Fund is regulated by the Constitution and legislative documents of Ukraine, the Cabinet of Ministers of Ukraine.
The Fund has its departments in all regions of Ukraine, the Republic of Crimea, and the cities of Kyiv and Sevastopol.
Main targets of the Fund are as follows:
· execution of authority to organize and perform privatization of property of enterprises in the state ownership;
· protection of property rights of Ukraine both on its territory and abroad;
· execution of rights to use property of the state enterprises in the process of their privatization, creation of joint ventures; and
· promotion of economy demonopolization process and creation of conditions for competition among producers.
To meet the targets, the Fund:
· changes the organizational form of state-owned enterprises into open-end joint-stock companies in the privatization process;
· sells state-owned property in the process of its privatization, including the property of liquidated enterprises and incomplete construction objects;
· executes agreements with intermediaries regarding organization of preparation for privatization and sale of privatization objects;
· issues licenses to intermediaries;
· takes measures to attract foreign investors in the privatization process;
· participates in creation of joint ventures, with state-owned property contributed to their statutory funds;
· represents interests of Ukraine abroad regarding issues of protection of the state pro-perty rights.
Practical activity of the State Property Fund of Ukraine is based on the annually approved privatization program.
The priorities in the sphere of privatization are defined to be:
· attraction of investments in the Ukrainian economy through the sale of shares through tenders and in the stock markets;
· attraction of national and foreign stock market agents to preparation for privatization; and
· cash sales of strategic privatization objects.