LAW OF UKRAINE

ON PRIVATIZATION OF PROPERTY OF STATE-OWNED ENTERPRISES 

(Enacted by the Resolution of the Supreme Council of Ukraine N 2164
-12 of 4 March 1992)

(amended and supplemented by Laws

N 2544-12 of 7 July 1992,
N 2623-12 of 18 March 1992,
N 3875-12 of 26 January 1994,
N 3982-12 of 22 February 1994,
N 64/95 of 15 February 1995;

by Decrees of the Cabinet of Ministers

N 9-92 of 21 January 1993,
N 15-93 of 19 February 1993) 

This Law sets up legal, economic and organizational grounds for
privatization of enterprises of all-state and republican (Republic
of Crimea) and municipal property in view of creating
multi-structural socially oriented market economy of Ukraine. 

PART I. GENERAL PROVISIONS 

Article 1. Notion of Privatization
Privatization of property of state-owned enterprises of Ukraine
(further - privatization) shall mean alienation of property being
in all-state, republican (Republic of Crimea) and municipal
property in favor of physical and non-state legal persons. 

Article 2. Principles of Privatization
Privatization shall be carried out on the basis of the following
principles:
lawfulness;
granting privileges to purchase state property to members of
working collectives of enterprises under privatization;
providing social protection and equality of rights to citizens of
Ukraine during privatization;
priority right for citizens of Ukraine to purchase state property;
free of charge transfer of a part of state property to every
citizen of Ukraine;
privatization of the state property on the payment basis with use
of privatization certificates;
keeping with anti-monopoly legislation;
complete, timely and reliable informing citizens on all actions
connected with privatization;
priority right of working collectives to choose the form of
property and purchasing property of their enterprises. 

Article 3. Legislation of Ukraine on Privatization
1. Legislation of Ukraine on privatization shall consist of this
Law, decrees of the President of Ukraine, other legislative acts
regulating privatization.
2. This Law shall be in effect for: privatization of objects of the
state land and housing funds and also objects of socio-cultural
use, excluding those belonging to enterprises under privatization;
change of organizational-legal forms of property of collective
farms, enterprises of consuming cooperation.
3. Privatization of parts (shares) being under the state property,
in the property of joint ventures with foreign investments shall be
carried out in accordance with civic legislation and statutory
documents of joint ventures. 

Article 4. State Program for Privatization
1. State program for privatization shall stipulate objectives and
conditions of privatization and be approved in the Supreme Council
of Ukraine being submitted by the Cabinet of Ministers of Ukraine
annually no later than one month before the beginning of the next
budget year.
2. State program for privatization shall include a task for the
first budget year and prognosis for the next two years.
3. State program for privatization shall specify: task concerning
privatization of all-state property; recommendations as to forms of
privatization for different groups of objects; procedure for
issuing and circulation of securities, volume of their total
emission and emission for one receiver, quotas of their obligatory
use in privatization of definite objects; measures to attract
foreign investors to privatization; accounting of expenses for
realization of the program for privatization and procedure for
payments; prognosis as to income of money as a result of
privatization and directions for their use.
4. (Withdrawn according to the Law N 2623-12 of 18 September,
1992).
5. The Supreme Council of Ukraine shall annually consider and
approve report of the Cabinet of Ministers of Ukraine on fulfilment
of the State program for privatization. 

Article 5. Objects under Privatization
1. Objects of state property to be subject to privatization
include: property of enterprises, shops, productive units, other
divisions that are separated into independent enterprises and form
single property complexes; unfinished constructions; parts (shares)
belonging to the state in the property of economic associations and
other amalgamations.
2. There shall not be subject to privatization:
property belonging to the state power and management bodies, the
Armed Forces of Ukraine, the National Guard of Ukraine, the
Security Service of Ukraine, the Close-to-Border Troops, law and
order and customs bodies; 
gold and currency funds and reserves, the state material reserves,
emission and reserve systems; 
property complexes of enterprises providing activity of issuing
securities and monetary units; 
means of the governmental, courier and special communications;   
objects of the state methodical service; 
national cultural and historic values of Ukraine, deposits, natural
water resources and other objects under the exclusive property of
the people of Ukraine; 
objects of education and science financed at the expense of the
budget and also divisions technologically connected with
educational and scientific process. Objects of education belonging
to enterprises and governmental departments may be subject to
privatization, provided their orientation on educational purposes
remains;
property complexes, providing activity of production and
realization of drugs, psychotropic substances, precursors, weapon,
explosive and radioactive substances; 
nuclear power stations; 
other objects of state property, necessary for the state to realize
its functions.
3. List of objects (groups of objects) to be subject to
privatization shall be approved in the Supreme Council of Ukraine
being submitted by the Cabinet of Ministers of Ukraine.
4. Buildings (constructions, premises) on the desire of buyers may
be privatized along with objects under privatization, provided
there is no a direct prohibition of the State Property Fund of
Ukraine, the Supreme Council of the Republic of Crimea or local
councils of people's deputies. Provided there is the prohibition
thereof, the specified buildings (constructions, premises) may be
given on lease to owners of the privatized objects. 

Article 6. Subjects of privatization
Subjects of privatization shall include: state privatization
bodies, buyers; sellers; representatives and mediators. 

Article 7. State Privatization Bodies
1. The state policy in the field of privatization shall be carried
out by the State Property Fund of Ukraine, privatization bodies of
the Republic of Crimea and administrative-territorial areas.
2. State Property Fund of Ukraine and its regional branches and
local representative offices shall undertake activities in keeping
with this Law and the Regulations on State Property Fund of Ukraine
approved in the Supreme Council of Ukraine. During its activity the
State Property Fund of Ukraine shall be subordinated and reportable
to the Supreme Council of Ukraine. head of the State Property Fund
of Ukraine shall be nominated in the Supreme Council of Ukraine
being proposed by the President of Ukraine. During privatization
the State Property Fund of Ukraine shall exercise the following key
powers: change of organizational-legal form of enterprises
belonging to the all-state property by means of their
reorganization into economic associations or act as a lessor of
property belonging to the all-state property; sell property
belonging to the all-state property, including property of
liquidated enterprises and objects of unfinished construction;
establish privatization committees; approve of plans of
privatization of property belonging to the all-state property;
conclude agreements as to working up plans of privatization and
estimation of property of objects under privatization; issue
licenses for mediators; work up and submit to the Cabinet of
Ministers of Ukraine draft programs for privatization and control
their fulfilment; be in contact with local privatization bodies.
3. Officials of the State Property Fund of Ukraine shall be
personally responsible for actions concerning property under
privatization.
4. The State Property Fund of Ukraine and its regional branches
don't have a right to interfere into activity of enterprises,
excluding cases provided in the legislation of Ukraine and
statutory documents.
5. The State Property Fund of Ukraine shall primarily get approval
of the Cabinet of Ministers of Ukraine as to a report on activity
and then submit it for approval to the Supreme Council of Ukraine.
6. Privatization bodies of the Republic of Crimea and
administrative-territorial areas shall fulfil the following
functions: work up draft programs for republican (Republic of
Crimea and local privatization; realize methodical management of
realization of the draft programs thereof, organize and control
their fulfilment; establish privatization committees for republican
and municipal privatization of state property; approve plans of
privatization; realize powers of property owner. Regulations on
privatization bodies of the Republic of Crimea and
administrative-territorial areas shall be approved in the Supreme
Council of the Republic of Crimea and relating councils of people's
deputies in administrative-territorial areas. 

Article 8. Buyers
1. Buyers of objects under privatization may be presented by:
citizens of Ukraine, foreign citizens, persons without citizenship;
legal persons, registered in the territory of Ukraine, excluding
those stipulated in this article, paragraph three; legal persons of
foreign countries.
2. For joint participation in privatization citizens may establish
an economic association or association of buyers by means of
concluding an agreement on joint activity. 
Establishing an association of buyers by members of working
collective of enterprises under privatization shall be carried out
on the basis of the decision undertaken at the meeting, provided
more than 50% of the enterprise (or its branches) workers or their
authorized representatives take part in it. Provided an association
of buyers unites more than 50% of workers it shall have priority in
choosing the way of privatization where it is not limited by laws
of Ukraine.
Association of buyers may also include former employees of the
enterprise under privatization who retired because of pension age,
as a result of jobs cutting, because of poor health and persons who
in accordance with the legislation may come back to he previous
place of work. Agreement on joint activity and also the protocol of
the meeting on establishment of the association of buyers shall be
registered in the relating privatization body. Association of
buyers may exercise the following powers: submit application on
privatization; receive credits; participate in auction, tender,
buying in the enterprise; conclude agreement on purchase and sale;
take property to ownership; prepare statutory documents and solve
other organizational questions as to establishing an economic
association or other type of enterprise on the basis of the
purchased property; act as a plaintiff or a defendant in court or
arbitrary court. Within its powers an association of buyers shall
exercise rights of a legal person.
3. Buyers shall not be presented by: legal persons in reference to
objects, list of which is specified by the state, republican
(Republic of Crimea) and municipal programs for privatization;
legal persons with share in the state property exceeding 25%; state
power and management bodies; employees of the State Property Fund
of Ukraine and its regional branches and also local privatization
bodies (excluding the cases when they use their privatization
certificates).
4. Buyers - legal persons shall submit to the State Property Fund
of Ukraine and local privatization bodies document on the shares of
its participants in the statutory fund. Buyer shall be responsible
for reliability of the submitted document.
5. The State program for privatization as to definite objects
(groups of objects) may contain other limits or peculiarities
concerning participation of buyers in privatization, including
quotas for purchasing of state property (shares) by legal persons. 

Article 9. Trust companies, investment funds, holding companies
1. For the purpose of offering services for circulation of
privatization property certificates (a type of securities),
creating the initial market of securities and further service for
it, lowering the risk of buyers during placement of investments in
objects of privatization, there shall be established commercial
trust companies, investment funds, holding companies and other
financial mediators. Services of mediators during privatization may
be used on voluntary basis.
2. Procedure for establishing and activity of trust companies,
investment funds, holding companies shall be set up in the
legislative acts of Ukraine. 

Article 10. Revision Committees for Privatization
1. For the purpose of providing control over realization of the
State program for privatization and keeping with the legislation of
Ukraine on privatization there shall be formed Revision Committee
of the Supreme Council of Ukraine for privatization composed of
people's deputies.
2. Regulations on the committee and its composition shall be
approved in the Supreme Council of Ukraine being submitted by the
Presidium of the Supreme Council of Ukraine.
3. For the purpose of providing control over realization of the
republican (Republic of Crimea) and municipal privatization
programs and keeping with the legislation of Ukraine on
privatization, the Supreme Council of the Republic of Crimea and
local councils of people's deputies may form relating revision
committees for privatization. Regulations on the committees thereof
and their composition shall be approved in the Supreme Council of
the Republic of Crimea and relating local councils of people's
deputies. 

P a r t II. PROCEDURE AND WAYS OF PRIVATIZATION 

Article 11. Procedure for Privatization
Procedure for privatization of state property shall include:
submitting application on privatization of property of state
enterprise or its separate divisions;
considering the application and taking a decision on privatization
of an object;
publishing information on taking the decision on privatization of
an object and establishing a committee for privatization;
approving a plan for privatization of property of state enterprise
and its realization. 

Article 12. Submitting Application and Taking Decision on
Privatization
1. Initiative on privatization may come from the State property
Fund of Ukraine, its regional branches, representatives, local
privatization bodies, members of working collective and also
buyers, as provided in this Law, article 8. Applications on
privatization shall be submitted in written to the State Property
Fund of Ukraine, its bodies or relating republican (Republic of
Crimea) or local privatization bodies according to the location of
object under privatization.
2. Applications received by regional branches and representations
of the State Property Fund of Ukraine and also privatization bodies
of Republic of Crimea and administrative-territorial areas shall be
considered within one month. Based on consideration of
applications, the State Property Fund of Ukraine or relating state
privatization body shall take decision on privatization of object
and inform on that the applicant and working collective of the
enterprise under privatization.
In case of refusal from privatization, it shall inform the
applicants on motives for refusal.
3. Refusal from privatization may be only in the following cases:
an applicant can not be recognized as a buyer in accordance with
this Law, article 8;
the legislation provides limits for privatization of this
particular enterprise;
property in accordance with the established procedure is included
into list of object (groups of objects) exempt from privatization.
4. Since the moment the decision on privatization is taken, it
shall be exempt from the validity of paragraphs three, five, six,
article 10, paragraph one, three, article 12, paragraph two,
article 24, paragraph three, article 25 of Law of Ukrainian SSR
"Enterprises in the Ukrainian SSR" concerning purchase, sale,
transfer, exchange, lease, giving free of charge and also
concerning purchase of securities, giving and receiving credits
exceeding average monthly level of such operations for the last
three years. Where these actions are necessary for efficient
functioning of a state enterprise under privatization, they shall
be undertaken by the enterprise on the permission of the State
Property Fund of Ukraine or responsible local privatization body. 

Article 13. Committee for Privatization
1. State privatization body within one month after the date the
decision is taken shall approve the composition of the committee
for privatization and set up terms for submitting plan for
privatization. This term shall not exceed two months after the
staff of the committee is approved.
2. The committee is formed of representatives of association of
buyers, other persons (and also their representatives), who applied
for privatization, representatives of the state privatization body
and the state management body, local councils of people's deputies,
financial bodies. Where the committee takes the relating decision,
there may be attracted to work experts, consultants and other
specialists, who have a right for advice at the meetings of the
committee.
3. The committee's activity shall be regulated by the present
Regulations, approved by the State Property Fund of Ukraine. 

Article 14. Plan of Privatization
1. Committee for privatization shall make up a plan of
privatization of object. The plan shall also include proposals of:
the working collective of the enterprise or other object under
privatization;
buyers;
local councils of people's deputies at the place of location of the
enterprise under privatization;
state privatization bodies.
Plan of privatization shall provide:
terms and organizational forms of privatization, starting price of
object under privatization (amount of statutory fund of economic
association), credit and debit debts, recommendations as to a form
of payment, quotas for obligatory sale for privatization property
certificates.
On the committee's decision, plan of privatization may also include
project for reorganization of object under privatization, which
provides organization on its basis structural divisions of legal
persons. For enterprises of monopoly position plan of privatization
shall specify conditions and limits as to their activities in
accordance with the legislation.
3. Provided the working collective of the enterprise under
privatization don't agree to the draft plan of privatization
prepared by the committee, the working collective may prepare an
alternative plan.
4. Draft plan prepared by the committee and the alternative draft
plan of the working collective shall be submitted to regional
branches of the State Property Fund of Ukraine or local
privatization bodies, where the plans shall be considered within
ten days, the plan of privatization shall be approved and given
over to parties concerned.
5. Decision of approval of the plan may be applied against in the
State Property Fund of Ukraine, Supreme Council of the Republic of
Crimea and local councils of people's deputies. 

Article 15. Ways of Privatization   
1. Privatization of the state property shall be realized by the way
of:
sale of objects under privatization and unfinished constructions by
auction, tender, including exclusive use of privatization property
certificates, hard currency;
sale of parts (shares) in property of enterprise by auction,
tender, on the stock exchange and in other ways implying
competitiveness of buyers;
redemption of state enterprise given on lease;
redemption of state enterprise in accordance with an alternative
plan of privatization.
2. Privatization of property of state small enterprises (objects of
small privatization) shall be carried out in accordance with law of
Ukraine "Privatization of Small State Enterprises (Small-Scale
Privatization)". 

Article 16. Sale of Objects under Privatization by Auction, Tender
Sale of objects under privatization and unfinished constructions by
auction, tender, with exclusive use of privatization property
certificates, hard currency inclusive, shall be carried out in
accordance with the procedure stipulated in part IV of Law of
Ukraine "Privatization of Small State Enterprises (Small-Scale
Privatization)". 

Article 17. Redemption of State Property Given on Lease. 
1. Redemption of state property under the contract on lease with
right for redemption shall be carried out in accordance with law of
Ukraine "Lease of Property of State Enterprises and Organizations".

Estimation of the state property given on lease shall be carried
out under the conditions, as provided in this Law, article 20.
2. Lease payment and other payments to the state or local councils
of people's deputies shall not be considered as payment for
purchasing property of state enterprise. 

Article 18. Sale of Parts (Shares) Belonging to the State in
Property of Economic Associations
1. Sale of parts (shares) belonging to state in property of
economic associations shall be carried out by reorganization of
state enterprises into joint stock companies.
2. While reorganizing state enterprise into joint stock company a
relating privatization body shall be its founder. The privatization
body shall act within powers, provided for founders of joint stock
companies. Limits contained in paragraph one article 30 of Law of
Ukraine "On Economic Associations" shall not be valid for state
privatization bodies as founders of a joint stock company.
3. Employees of the enterprise which property is subject to
privatization have a priority right to receive so many shares as
they can repay in accordance with paragraph one article 25 of this
Law.
4. Founder of a joint stock company shall set up in keeping with
the plan of privatization amount and terms of sale of shares (with
taking into consideration buying shares by members of the working
collective of the enterprise in accordance with paragraph three
this article), and also the procedure for making payments. During
reorganization of state enterprises into joint stock companies in
accordance with this Law only ordinary shares may be issued.
5. Sale of Shares to Founders of Joint Stock Company shall be
realized exclusively on the competitive basis. Procedure and
conditions for competitive sale shall be established by the State
Property Fund of Ukraine.
6. Organized joint stock company shall be successor in rights of
the privatized enterprise. 

Article 19. Information on Privatization
1. Information on Privatization shall include:
list of objects under the decision on privatization, conditions of
their sale; 
term, during which applications for participation in privatization
are considered; 
decision on approval of plans for privatization and concluding
agreements with legal persons or specialists for working up the
plans of privatization and sale of objects of privatization , and
also grounds for taking decision on privatization; 
results of realization of plans of privatization which shall be
published in special publications of the State Property Fund of
Ukraine, its regional branches and relating local privatization
bodies. These publications shall be distributed on advance payment
and in retail trade.
2. Information on terms and conditions of auction, tender, issuing
shares for free sale shall be published no less than 30 calendar
days before holding an action, tender, free sale of shares.
3. A typical, obligatory for publication list of information shall
be established by the State Property Fund of Ukraine individually
for types of enterprises; it shall also concern procedure for
publishing and form of publishing. 

P a r t III. FINANCIAL RELATIONS IN PRIVATIZATION 

Article 20. Fixing Starting Price for Property of Enterprises under
Privatization 
Fixing starting price of object under privatization or amount of
the statutory fund of an economic association that is formed on the
basis of the state enterprise shall be carried out on the basis of
estimation of the basic production funds with deduction of wear and
tear, real cost of circulating funds and taking into consideration
debit and credit debts in keeping with the methods, approved in the
Cabinet of Ministers of Ukraine. Where it is provided in the State
and local programs for privatization, starting price of the
property of state enterprise may be changed with consideration of
potential profitableness. 
When changing the general procedure for estimation  of objects
under privatization, a nominal cost of privatization property
certificates and volume of their total emission shall be subject to
mandatory indexation. 

Article 21. Sources of Money for Buying State Property under
Privatization
1. State property under privatization may be purchased at expense
of own money and borrowed money by buyers having right to take part
in privatization in accordance with this law, and also at expense
of privatization papers issued for circulation in accordance with
Law of Ukraine "On Privatization Papers". Credits of commercial
banks can not be used as payment means during privatization,
provided they are given at expense of credit resources received
from the National Bank of Ukraine and budget. When buying the
object under privatization for the amount exceeding fifty minimal
salaries, a citizen shall submit a declaration on income. 
2. Money being at the property of working collective may be used
for buying object under privatization only when they are
transferred to private ownership in accordance with article 38 of
Law of Ukrainian SSR "Property".
3. Buyers - non-residents may receive state property in process of
privatization with payment for it in hard currency. Transfer of
cost of objects under privatization into hard currency shall be
carried out at the rate, fixed by the National Bank of Ukraine. At
this the cost of object under privatization shall respectively be
increased by a coefficient, fixed in the State property Fund of
Ukraine and which can not be established individually for some
object under privatization.
4. (Validity of item 4 is terminated by Decree of the Cabinet of
Ministers N 15-93).
5. Buyers having right to participate in privatization, in
accordance with this law, may use money only by means of written
transfer from accounts in the banks of Ukraine within amounts
placed at the accounts. 

Article 22. Procedure for Amounts of Emission of Privatization
property Certificates and Their Nominal Cost
1. Privatization property certificates shall be issued to the
amount of cost of the state property to be subject to free of
charge transfer of property of state enterprises to citizens of
Ukraine during the process of privatization. The starting amount of
share given free of charge to citizens of Ukraine shall not be less
than 40% of the cost of property under privatization. Volumes of
emission of privatization property certificates and their nominal
cost shall be established by the State program for privatization.
Nominal cost of privatization property certificates shall be
established by dividing of the total sum of emission of these
privatization papers to a number of citizens of Ukraine.
Privatization property certificates shall be in a form of a coupon
and may be used in parts for paying for purchased objects under
privatization. 

Article 23. Use of Money Received from Privatization
1. Money received as a result of sale of the state property shall
be transferred to the non-budget State property Fund of Ukraine,
non-budget privatization funds of the Republic of Crimea and
administrative-territorial areas.
2. Money of the specified funds shall be used for clearing off
internal state debt of Ukraine and also for payments connected with
privatization, crediting of technical re-equipment of privatized
enterprises and establishing new working places within limits fixed
by the State program for privatization.
3. Money in hard currency shall be used for crediting of technical
re-equipment and reconstruction of privatized enterprises, filling
up currency reserve of the National Bank of Ukraine, Currency Fund
of Ukraine, including respective funds of local Councils of
people's deputies.
4. There shall be prohibited to use money received as a result of
privatization to cover the deficit of the state and local budgets. 

P a r t IV. SOCIAL ISSUES OF PRIVATIZATION 

Article 24. Free of Charge Transfer of State Property
1. Every citizen of Ukraine has a right to get free of charge state
property to the amount of the received privatization certificate.
2. Association of buyers, established by employees of an
enterprises in accordance with article 8 of this Law, who have
become owners of their enterprise as a result of redemption of the
enterprise, buying it by auction, by tender, buying 51 and more %
of shares, may free of charge receive in accordance with the
agreement of the state privatization body objects of social and
every-day use, created at the expense of social development fund
(analogous funds). These privileges shall be also valid in case of
redemption of the state property by lease enterprises. 

Article 25. Privileges for Employees for Buying Shares of
Enterprises under Privatization
1. Employees of the enterprise under privatization shall have a
right to: out of turn buy shares for their nominal cost to the
amount and at the expense of the privatization property certificate
giver to the employee; out of turn buying at one's own expense
shares for their nominal cost to a half-amount of the privatization
property certificate given to the employee.
2. Shares bought by the employees under the privileged conditions
shall not be subject to sale or any alienation in the other form
before the national currency is introduced.
3. Privileges, provided in this article, shall be also valid for
former employees of the enterprise who retired as reached old-age
pension, as a result of job cuts and have not been employed at
other enterprises since the date of retirement, persons who in
accordance with the legislation can return to their places of work
and also invalids as a result of crippling or professional disease.
4. Economic association, association of buyers, organized by
employees of the enterprise under privatization, in accordance with
article 8 of this Law, shall use priority right for buying property
of enterprise in comparison with other participants of tender,
provided there are equal conditions for buying, and also a right
for delayed payments for term more than three years with the
initial investment of no less than 30% of the price for property,
purchased by auction, tender. 

Article 26. Social guarantees for Employees of Privatized
Enterprise
1. Labor relations at privatized enterprises shall be regulated by
the legislation of Ukraine on labor.
2. Procedure for concluding a collective agreement between a new
owner or an authorized by body and a working collective shall be
regulated by the legislation of Ukraine on labor and employment and
Law of the Ukrainian SSR "Enterprises of Ukrainian SSR". 

P a r t V. CONTRACTUAL RELATIONS IN PRIVATIZATION 

Article 27. Forming Agreements on Privatization
1. During privatization of property of state enterprises as single
property complex by redemption, sale by auction, tender there shall
be concluded an agreement on purchase and sale between seller and
buyer .
2. Agreement on purchase and sale may include obligations as to:
clearing off debts of the state enterprise, reserving of social and
every-day objects, measures to provide secure conditions of work
and environmental protection; other obligations of seller and
buyer. Term for the specified obligations shall not exceed two
years. Conditions, that are not included into the plan of
privatization and conditions of auction, tender, shall not be
included into an agreement on purchase and sale without agreement
for them of seller and buyer.
3. Owners of privatized objects have priority right for a long-term
lease of occupied by them land lots with further redemption of the
land in accordance with the legislation of Ukraine, provided it is
not prohibited by the Cabinet of Ministers of Ukraine or a relating
local council of people's deputies. A local power body shall,
within one month since the date of registration of the privatized
object, re-conclude an agreement on lease of land.
4. Agreement on purchase and sale shall be subject to notary
confirmation and registration in executive committees of councils
of people's deputies within one month after the date it is signed.
Procedure for transfer of the right of ownership for privatized
objects shall be specified in accordance to the legislation. 

Article 28. Successorship
1. Persons who bought state enterprises as single property
complexes shall be successor of rights and obligations in
accordance with the provisions of the agreement between seller and
buyer and legislation of Ukraine.
2. The above specified objects shall not be subject to alienation
by purchase-sale, exchange, presenting before the national currency
is introduced. 

Part VI. RESPONSIBILITY FOR VIOLATION OF THE LEGISLATION ON
PRIVATIZATION. SETTLING DISPUTES 

Article 29. Responsibility for Violation of legislation on
privatization
1. Where the legislation on privatization is violated, violators
shall be subject to criminal, administrative, disciplinary,
civil-legal responsibility in accordance with the legislation of
Ukraine.
2. Officials of state privatization bodies, other state power and
management bodies shall be under criminal responsibility in
accordance with the Criminal Code of Ukrainian SSR, provided they
purposefully violate the legislation on privatization.
3. Officials of state privatization bodies, other state power and
management bodies shall be under administrative responsibility in
the form of fine for: ungrounded refusal from accepting an
application on privatization; violation of terms for consideration
on an application on privatization; violation of conditions and
procedure for tender, auction, sale of parts (shares) - ranging
from four to eight amounts of minimal salary fixed for the date of
violations; ungrounded refusal from sale of an enterprise
(property, shares); ungrounded refusal from issuing privatization
papers for citizens of Ukraine - from five to ten amounts of
minimal salary for the date of violations. Fines shall be raised in
accordance with the court decision, as provided in the Code of
Ukrainian SSR on Administrative Violations.
4. Buyers who refuse from paying for object of privatization bought
by auction, tender, within 60 days since the date of conclusion of
the relating agreement shall pay compensation to the amount of 20%
of the price of the purchased object. Where it happens, results of
auction, tender shall be cancelled.
5. Losses due to violations of the legislation of Ukraine on
privatization shall be compensated in the procedure, established in
the civic legislation of Ukraine. 

Article 30. Disputes during Privatization
Disputes appearing in the process of privatization shall be settled
in court or arbitrary court in accordance with the established
procedure and within their competence. 

President of Ukraine L.Kravchuk
4 March 1992 N 2163-XII