STATE PROGRAM FOR THE PRIVATIZATION OF THE PROPERTY OF
STATE-OWNED ENTERPRISES. 

Contents

General Premises

PART 1. Priorities and conditions for conducting privatization.
Chapter 1. Objects of privatization. 
Chapter 2. Methods for the privatization of different groups of
objects. 
Chapter 3. Procedure for issuing and circulating the privatization
securities.
Chapter 4. Conditions for the participation of foreign investors in
privatization.
Chapter 5. Creation of the conditions for supporting the
privatization process.
Chapter 6. Requirements for the republican (Republic of Crimea) and
local privatization programs.
PART 2. Tasks and forecasts concerning the change in property
structure.
Chapter I. Property forms and the forecast of the changes in the
property structure. 
Chapter 2. Privatization tasks. Chapter 3. Forecast of the
financial revenues and norms for their distribution.
PART 3. Measures for the organization of the privatization process
in 1992. Chapter 1. Legislative, normative and methodological
supports of Privatization.
Chapter 2. Creation of the network of state privatization bodies.
Chapter 3. Promoting the creation of the privatization
infrastructure.
Chapter 4. Informational support. 
Chapter 5. Research support. 
Chapter 6. Personnel support. 
Chapter 7. Financial support.
 
GENERAL PREMISES
The State Privatization Program (hereafter "Program") is a
constituent part of the program for creating a market econom^J^ in
Ukraine. The Program is worked out in accordance to the^^
"Conception for the De-nationalization and Privatization of
Enterprises, La nd and Residential Housing, " the Ukrainian laws
"On the Privatization of the Property of State-Owned Enterprises",
"On the Privatization of Small State-Owned Enterprises (small
privatization)" and "On Privatization Securities".
The Program foresees the accomplishment of the following principal
goals:
- changing of the property relations of the means of production,
with the goal of their qualitative transformation and their
effective use;
- the creation of a layer of non-state owners as the basis for a
heterogenous socially orientated economy;
- restructuring the economy;
- the stabilization of the economic situation;
- the development of competition and restriction of monopolism;
- attracting foreign' investors.
The program defines:
- the priorities and conditions for the privatization of republican
owned property; 
- the privatization tasks for 1992 and the forecast of the^ changes
in the property structure for 1993-1994;
- the medsures that will support the creation in 1992 of the
organizational and economic conditions necessary for implementing
the state privatization policy in 1993-1994.
The regulations set forth in the Program must be fulfilled in a
compulsory manner by the central and local governmental exeutive
bodies, and by the local and regional bodies of self governmet.
PART 1. PRIORITIES AND CONDITIONS FOR CONDUCTING
PRIVATIZATION.
Chapter 1. Objects of privatization.
1.1 The first objects to be privatized are those that have the
greatest influence on the development of the consumer market, those
that hamper the process of stabilization of the state budget, those
that hinder the economic development of Ukraine and the formation
of its market economy. Such objects include:
- retail and whole sale trade enterprises; public catering
establishments; establishments providing services to the
population; 
- enterprises providing housing and communal services, including
establishments providing housing repair, elevator repair, hotel
services, gardening services and ritual services, maintenance of
population centers and building renovation;
- construction enterprises; enterprises of the construction
materials industry;
- enterprises of the food industry; enterprises that specialize in
processing of agricultural produce; enterprises that service
agricultural industries; enterprises that manufacture equipment and
technology for other agricultural enterprises;
- enterprises of the local, wood processing and light industries;
- loss making enterprises in all branches of the economy, as long
as the losses are not caused by prices and tarriffs fixed and
regulated by the state;
- layed up objects; unfinished construction projects financed from
state capital investments or from subsidies from the state and
local budgets or whose normative (planned) date of delivery has
expired;
- enterprises of material and technical supply.
1.2 Objects to be privatized with the agreement of the Cabinet of
Ministers of Ukraine:
- objects of civil defense;
- nuclear machine-building enterprises;
- specialized elevators, refrigerators and warehouses used for the
permanent storage of state reserves arid the preservation of
mobilization supplies;
- enterprises that process precious metal ores, precious and
semi-precious stones, radioactive and rare earth elements;
- enterprises and associations of the fuel and energy complex,
including coal, oil and gas processing enterprises and
organizations; objects that supply oil products; oil storage
facilities that are of inter-regional and republican importance;
- rail, sea, river and air transport enterprises, and general-use
automobile transport enterprises;
- pedigree stock-breeding and stud farms; centers for the selection
of plant hybrids; state seed inspectorates and laboratories for the
research and sorting of agricultural cultures; sorting research
stations and plots;  1
- enterprises and objects in the electical energy sector;
hydroelectric power stations; heat and power plants;
- enterprises of the medical industry;
- enterprises that conduct retail sales for hard currency;
- enterprises that service the water, canalization, heating and gas
systems of residential and commuftal buildings;
- enterprises that specialize in the production of prostheic and
orthopedic devices.
1.3 Enterprises and objects that are not subject to privatization
in 1992:
- propety of the organs of state authority and administartlon, of
the Armed Forces, of the National Guard, of the National Security
Service, of the Border Troops, of the Law Enforcement and Customs
Agencies;
- objects of the Urainain National Space Agency under Cabinet of
Ministers of Ukraine;
- gold and hard currency funds and reserves; state material
reserves;
- emission system; enterprises and Institutions that issue and
store currency and securities;
- television and radio broadcasting centers;
- enterprises of the geological, cartographic and
hydrometeorological services, centers for the control of the
environmental situation;
- objects of education, physical education, sports and science that
are financed from the budget, as well as any organizational
subdivisions that are tied to educational and sclentifcic
processes. Objects of education, phlsical education, and sports
that belong to enterprises and organizations can be privatized on
the condition that they continue operating In their previous sphere
of activity;
- objects of culture, art, architecture, memorial complexes;
natural reserves, national parks;
- state organs of standardization, metrology and the certification
of production. 
enterprises that manufacture and repair, all types of armaments;
enterprises that produce explosives or toxic substances;
enterprises that work with explosives;
-enterprises that manufacture narcotics, bactereological,
biological, psychotrophic, high potency chemical and toxic
substances;
- crematoriums and cemeteries;
- roadways of national use;
- subways, city electrical transport;
- electricity transmission main lines; oil and gas pipelines,
pipeline transport;
- objects of municipal engineering infrustructure and municipal
maintenance, including networks, buildings, and equipment used in
the production and supply of water, gas and heating, as well as the
drainage and purification of sewage;
- irrigation and protective reservoirs and dams;
- specialized means of transportation;
- enterprises that produce spirits', wine and liquor;
-radiation-proof buildings.
-grain procurement and grain processing enterprises.
-port constructions, hydrographic training fleet, navigation
inspectorates.
-polygons, buildings, constructions and equipment used for the
burial of hard industrial and domestic wastes; livestock burial
sites.
The list of objects not subject to privatization will be revised
annually.
1.4. Enterprises, excluding those listed in sections 1.2 and 1.3,
will be privatized in 1992 in accordance to the existing
legislation, the requirements of this program and the proposals of
potential buyers.
Restrictions on privatization do not extend to the structural
subdivisions of enterprises listed in sections 1.2 and 1.3, if
these operate in areas outside the enterprise's main field of
activity.  5
 
1.5. The objects 'to be privatized are classified by the balance
value of their main funds as of 1.05.92. (hereafter "value") and
certain qualitative characteristices.
Group A: -objects whose value does not exceed 20 million rubles.
(With the exception of enterprises in Group D).
Group B: -objects whose value ranges from 20 to 1500 million
rubles, and where the share of the reconstruction cost of the
object per worker does not exceed the nominal value of the
privatization certificate by more than 1.5 times. (With the
exception of objects in Group D).
Group C: -objects whose value ranges from 1,5 to 100 million
rubles, and where the share of the reconstruction cost of the
object per worker exceeds the nominal value of the privatization
certificate by more than 1.5 times.
Group D: -monopolist enterprises, defined as such by the Ukrainian
Law "On Restrictions of Monopolism and Prohibition of Unfair
Competition In Enterpreneurial Activity", regardless of their
value.
-enterprises of the military-industrial complex that are subject to
conversion according to the corresponding program, regardless of
their value.
-enterprises where privatization involves foreign investments based
on international agreements signed by Ukraine, regardless of their
value.
-objects whose value exceeds 1500 million rubles ;
Group E: -layed up objects and unfinished construction projects;
-assets of liquidated enterprises.
Group F: -state shares (parts, stocks) of the property of
enterprises with mixed capital.
1.6. Structural subunits of enterprises (workshops, departments
etc. ) which are unified homogeneous property complexes with a
complete technological cycle, and are turned into independent
enterprises, may be objects of privatization.
Chapter 2. Methods for the privatization of different groups
of objects.
2.1. During the process of privatization the following methods of
privatization will be utilized:
-buyout of the objects of small privatization by the buyer
 

association made up of the employees of said objects;
-buyout of the state owned assets of anenterprise, in accordance to
the alternative privatization plan;
-buyout of state owned assets leased with a "buyout option".
-buyout of leased state owned assets.
-sale at auction;
-sale by non-commercial competition;
-sale by commercial competition;
-sale with deferred payment ;
-sale of shares of open joint stock companies;
I
2.2. Buyout of an object of small privatization: a privatization
method where the buyer association made up of the object's
employees becomes the owner. This method of privatization does not
forsee competition among buyers.
2.3. Buyout of the state owned assets of an enterprise in
accordance to the alternative privatization plan: A method of
privatization where the buyer associalon made up of the object's
employees becomes the owner of the object (or one of its parts), in
accordance with the privatization plan developed by the buyer
association as an alternative to the privatization plan proposed by
the privatization commission.
2.4. Buyout of state owned assets leased with a "buyout option": a
method of privatization where the lessee becomes the owner, in
accordance to the lease agreement.
2.5. Sale at auction: a privatization method where the owner
becomes the buyer that offered the highest price during the course
of the auction.
2.6. Sale by non-commercial competition: a privatization method
where the owner becomes the buyer that offered the best conditions
for the future use of the object, or under equal conditions, the
highest price.
2.7. Sale by commercial competition: a privatization method where
the owner becomes the buyer that offered the highest price given a
fixed set of starting conditions.
2.8. Sale with postponed payment: a method of privatization where
the owner becomes that buyer that on a competitive basis acquired
the right to purchase the object with payments deferred over a
three year period, on condition that an Initial payment equal to
30% of the value be made.
2.9. Sale of shares of open joint stock companies: a method of
privatization where the owners of the shares of state enterprises
transformed into open joint stock companies become the buyers that
on a competitive basis offered the highest price for the largest
amount of the shares left over after the initial
 

sale of shares at beneficial terms.
2.10. The methods of privatization to be used for different group
of objects are shown in Table I.I.
Table I Privatization methods for different groups of objects
Privatization Groups of privatization objects methods ABCDEF
1.Buyout of privatization objects by buyers association *
2.Buyout of the enterprise according to the alternative
privatization plan  * * * * *
3.Buyout of the state-owned assets leased with a buyout option
clause * * * * *
4. Sale at auction * * * * *
5. Sale by non-commercial competition ******
6. Sale by commercial competition ******
7. Sale with postponed payment  * * * * *
8. Sale of shares of open joint stock companies  * * *
 

2.11. The privatization of Group A objects will take place through
buyout by the buyers association, buyout of the enterprise
according to the alternative privatization plan, through sale with
postponed payment, through sale by competition or auction, or
through buyout of state-owned assets leased with a "buy out option"
in the lease contract (sections 2.2, 2.3, 2.4-2.8).
In order to create the appropriate lists, the privatization bodies
will publish an initial list of enterprises proposed for
privatization in the corresponding monthly information bulletins.
Within the term of one month, buyers will submit to the
privatization bodies their applications for the privatization of
objects mentioned in the preliminry list.
If an application from the buyer association made up of the
employees of an object is submitted within the given time period
and no other application is submitted by other buyers, then the the
object is included in the list of objects whose privatization will
take place through buyout, (section 2.2 of this Program.)
t
In cases where for one object more than one application is
submitted, then this object can be included in the list of objects
whose sale will take place through competition or auction.
Objects for which the buyer association fails to pay in accordance
to the terms of the sale agreement will also be sold through
competition or auction.
Objects that remain unsold after a competition or auction are
subject to privatization through leasing with a buyout option, or
through sale with deferred payment.
It is proposed that in 1992 no less than 10% of the total number of
objects to be sold at auction (or through competition) will be sold
exclusively for privatization certificates.
2.12. The privatization of Group  enterprises wil take place
through the methods described in points 2.3-2.9 of this Program.
The bodies of privatization, in accordance to the tasks set forth
in this Program, the Republican (Republic of Crimea) and the local
privatization programs, will publish every month in the
corresponding privatization bulletins a list of the objects that
are being offered for privatization.
Within the term of one month, buyers will turn in to the
privatization bodies their applications for the privatization of
 

the objects mentioned In the list.
If an application from the buyer association made up of th^^
employees of an object Is submitted within the given time perlo^^
and no other application is submitted by other buyers, then the
privatization of the object is carried through a buy out in
accordance to the alternative privatization plan. (Point 2.3 of
this Program)
If the buyer association created by the workers of the object buys
on beneficial terms no less than 50% of the value of the object,
then In the alternative privatization plan the rest of the value
can be paid in Instalments over a period of three years.
If the buyer association does not buy the object in accordance to
the alternative privatization plan, or if It buys only a part worth
less than 50% of the total value of the object, then the rest of
the property will be sold through any of the other methods proposed
for objects in Group B.
The method of privatiztion mentioned in section 2.8 will be used
for the group of shares not sold through the methods of
privatization mentioned in sections 2.3, 2.5, 2.6, 2.7, 2.9.
2.13. The privatization of Group Ń objects will take place through
the sale of shares by the methods described in sections 2.4-2.9.
The privatization of Group Ń objects Is preceded by their^
corporatization; that Is by the transformation of these enterprises
into open joint stock companies with 100% of shares belonging to
the state.
The employees of the enterprise under privatization can excercise
their priority right to acquire stocks on beneficial terms in
accordance with the time period established in the privatization
plan.
If under this situation they buy no less than 50% of the shares,
then In the alternative privatization plan the rest of the shares
can be paid with a deferment of three years.
The method of privatiztion mentioned in section 2.8 will be used
for the group of shares not sold through the methods of
privatization mentioned In sections 2.3, 2.5, 2.6, 2.7, 2.9.
In 1992, it is proposed that a volume of shares worth no less than
10% of the total nominal value of enteprises of this group
(excluding those sold In accordance to the privatization plan under
beneficial terms) will be sold to other buyers exclusively for
privatization certificates.
 

2.14. Privatization of Groups D will take place In agreement with
the Cabinet of Ministers of Ukraine through the methods forseen by
the Program for either Group  or C.
By the decision of the Ukrainian government, foreign auditing,
legal and consulting firms as well as Investment banks and other
financial Institutions can participate in drafting the conceptions
and privatization plans for objects in Group D.
Obligatory quotas for the use of privatization certificates are not
established.
2.15. Privatization of Group E enterprises will be carried out
exclusively through sale at auctions or by competition. (Sections
2.5 - 2.9 of this Program).
In June 1992 the Cabinet of Ministers of Ukraine and the local
bodies of executive power will create a list of unfinished
construction projects, that will be privatized In 1992 exclusively
through the use of hard currency.
The targets for the first sales will be unfinished industrial and
social-service construction projects where the construction time
has surpassed the established norms by more than two times, or
where the degree of completion Is less than fifty percent.
The method of privatiztion mentioned in section 2.8 will be used
for objects not sold through the methods of privatization mentioned
in sections 2.5, 2.6, 2.7.
2.16. Privatization of Group F objects.
The privatization of state shares (parts, stocks) of the property
of enterprises with mixed property will be carried out in agreement
with their statutory documents and the enacted legislation.
2.17. The privatization of state owned assets leased without a
"buyout option" in the lease contract will be carried out through
the method determined after the enterprise has been placed in one
of the groups defined In this Program.
In the transfer of the property rights over an object from the
state to other persons, the existing lease agreements remain in
force for the new owner (owners).
2.18. The privatization of state owned assets leased with a "buyout
option" will be carried out through a buy out by the Organization
of Leasers, under the conditions set forth in Article 17 of the Law
"On the Privatization of the Property of State-Owned Enterprises".
 

2.19. During 1992 and 1993 the Cabinet of Ministers of Ukraine and
the State Property Fund of Ukraine will organize the conducting of
an analysis of the state of the markets for certain types of
products on the territory of the Ukraine. (Sectoral analysis.)
This analysis will have as a go^l the Identification of the best
method for the privatization of enterprises, by taking Into account
the conditions of sale, the effectiveness of future activity, and
the creation of a competitive environment in specific sectors and
spheres of the economy.
The results of the sectoral analysis will be utilized anually
during the writing of the state privatization programs.
Chapter 3. Procedure for issuing and circulating the
privatization certificates.
3.1. Privatization certificates along with cash and money deposited
in the special privatization accounts of citizens of Ukraine, will
be used for payment of the acquired privatized objects.*
Until the Issuance of privatization certificates in paper form, the
necessary payments will be made from the privatization deposit
accounts of citizens. These accounts are opened for the sum of the
nominal value of the privatization certificates.
By September I, 1992 the Local Radas of People's Deputies, the
Ministry of Internal Affairs of Ukraine and the Ministry of Foreign
Affairs of Ukraine will compile and submit to the branches of the
Savings Bank of Ukraine the lists of citizens who have the right to
open privatization deposit accounts. These lists will be subject to
permanent revision by the abovementloned bodies. The procedure for
the drawing up and revision of the lists will be established by the
Ministry of Internal Affairs of Ukraine, taking into account the
migration pattern of the Ukrainian citizens.
Beginning on September 1,1992 the citizens of Ukraine are granted
the right to open privatisaton deposit accounts. This date will be
considered the moment of the factual emmisslon of the privatization
certificates.
I
3.2 The reconstruction value of the state property that is subject
to privatization at the moment of the emission of the privatization
certificates, is calculated to be: the residual value of the main
assets Increased 13.2 times plus the value of the current assets
Increased 6.6 times. The average is 10 times.
The reconstruction value of the state property that is
 

subject to privatization at the moment of the emmisson of the
privatization certificates (September I, 1992) is 2,171 billion
rubles.
* hereafter privatization certificates, money deposited in the
privatization deposit accounts and in the special privatization
accounts, if mentioned together, are referred to as "privatization
money of the citizens".
The total sum of the value of the emission of the privatization
certificates (70% of the value of the property that is subject to
privatization) Is 1,520 billion rubles.
The nominal value of the property that will be given free of charge
to each citizen of the Ukraine, is shown on the privatization
certificate, and is 30,000 rubles.
3.3 A privatization deposit account is opened when a citizen makes
the first payment towards an aquired object of privatization.
The procedure of issuing Into circulation the privatization
certificates in paper form, with ue consideration given to the
money in the privatization deposit accounts that was not used by
the citizens, will be established by the State Privatization
Program for 1993.
The money deposited in privatization deposit accounts and the
privatization cerificates will have to be used by the citizens of
Ukraine before January I, 1995, if not otherwise determinedby the
State Privatization Program for 1995. Privatizaton certificates not
used during this period will be considered matured (privatization
deposit accounts - closed).
The procedure for the circulation and the convertability rates of
the privatization certificates (privatization deposit accounts)
Into privatization securities that give the right to the citizens
of Ukraine to recieve free of charge a part of the state-owned
housing and land stocks, will be established after the adoption of
laws on the privatization of these assets.
3.4 During 1992 the conditions for the proper functioning of the
network of holdings, investment funds, trust companies and other
non-state financial intermediaries will be created.
Financial intermediaries will attend to the cireulatlon of the
privatization money of the citizens of Ukraine, will ensure the
creation of the primary securities market and its further support,
and will allow for the reduction of the risk to the buyers during
the process of investing in the objects of privatization.
 

The legislation of Ukraine will establish the procedure for the
creation and operation of the financial intermedireies; establish
the procedure for the funds to gather the privatization money of
the citizens and the money of any other physical and juridical
persons and the procedure for licensing this activity, i
Holdings, on their own behalf and at their own expense, and in
accordance with the anti-monopoly legislation, will buy controlling
packages of shares in enterprises undergoing privatization.
Investment funds, on their own behalf and at their own expense,
will carry out colpmercial activity through the exchange of
privatization securities for a package of shares of limited size
(no more than 10 percent of the total value of the shares) in
enterprises undergoing privatization.
Trust companies, on behalf, at the request of, and at the expense
of the owners of privatization securities, will carry out agency
activity with privatization securities.
Holdings and investment funds will accumulate privatization money
of the citizens and deposits from other buyers in exchange for the
shares of their own Issuance.
Financial Intermidiaries will execute sales of the acquired shares
in the securities market.
CHAPTER IV. Conditions for the participation of foreign investors
in privatization.
4.1 Purchasers that are foreign investors* can participate in the
privatization of all the objects of privatization with the ex^ptlon
of those that according to the Ukrainin legislation are not subject
to privatization.
4.2 The Cabinet of Ministers of Ukraine, based on the results of
the sectoral analysis, approves a list of enterprises whose
privatizizatlon Is advisable to carry out with the participation of
foreign investments. The list of such objects (enterprises) is a
constituent part of the State Program for attracting foreign
investments to Ukraine.
4.3. Foreign investors can freely and without any supplementary
permission can participate In the purchase of the property of
enterprises under republican and communal property, In all cases
when the privatization is carried out through competition or
auction. The property will be paid for in freely convertible hard
currency. The conversion of the value of the acquired objects into
freely convertible hard currency will be done at the market
exchange rate of the National Bank of Ukraine. Under this
situation, the sale price will be incresed beforehand
 
 

by a coefficient set by the State Property Fund.
The above mentioned coefficient applies to all enterprises (objects
of privatization) and can not be set individually for specific
enterprises.
In cases where the sale of a state enterprise to foreigners does
not take place through a competition or auction, a special
valuation of the property in freely convertible hard currency
*) During the process of privatization the physical and juridical
persons of the republics of the former USSR will be treated as
foreign investors.
will take place.
In this situation the valuation of the property can be carried out
with the participation of foreign auditing, legal, and consulting
firms, as well as investment banks.
The procedure for the payment of the acquired objects described in
Part 3 of Article 21 of the Ukrainian law of "On Privatization of
Property of State-Owned Enterprises", is extended to apply to
juridical persons created on Ukrainian territory by foreign
investors and companies with foreign investments, if these buy an
object of privatization.
CHAPTER V. Creation of conditions for the support of the
privatization process.
5.1. The formation of state privatization bodies will be mainly
completed during 1992.
The State Property Fund of Ukriane will create regional branches in
the Republic of Crimea, in each oblast, in the cities of Kiev and
Sevastopol, and will also establish, if necessary, sectoral and
representative offices in other cities population centers.
5.2. Control over the execution of the State Privatization Program,
and also over its adherence to the Ukrainain privatization
legislation, will be exercised by the Supreme Rada's Controlling
Commission on Privatization Questions.
5.3. In August 1992 the Cabinet of Ministers of Ukraine will
establish the Out-of-Budget State Privatization Fund, which will
manage the money recieved from privatization.
5.4. During 1992-1994 the Cabinet of Ministers and the State
 

Property Fund of Ukraine will take measures to create the network
of institutions of market infrastructure which will ensure the
functioning of the securities and the real estate markets.
(financial intermediaries, commercial banks, insurance companies,
exchanges, consulting, auditing, and expert companies etc.)
5.5. In order to support privatization, throughout 1992-1994, the
State Property Fund of Ukraine and its regional branches will
support the compilation and publication of methodological materials
and manuals that explain the mechanism and methods of conducting
privatization, materials that explain to the Ukrainian citizens the
possibilities for participating in the privatization process, as
well as the benefits which are granted to them under the
privatization legislation.
5.6. In October 1992 the Commitee on Science & Technology together
with the State Property Fund of Ukraine, the Ukrainian Ministry of
De-statization of Property and De-monopolization of Production, the
Ministry of Economics of Ukraine and the Ministry of Labor of
Ukraine will submit for the approval of the Cabinet of Ministers of
Ukraine the program for research in the area of privatization.
5.7. In June 1992 the State Property Fund of Ukraine will set up a
special informational bulletin on privatization, and will create an
information center to gather and analyze statistical information on
the pace of privatization, and the objects of privatization.
5.8. In 1992, the Ministry of Education together with the Ministry
of De-statization of Property and De-monopolizaton of Production,
the State Property Fund of Ukraine and the Supreme^ Rada's
Comission on Questions of Economic Reform and the' Management of
the Economy will elaborate educational programs and specialised
courses on privatization issues and on the functioning of market
structures, and will nominate basic educational establishments for
the training of experts in these fields.
In the course of 1992 and 1993, basic educational institutions will
carry out the training of over 1.5 thousand specialists who will
act as the representatives of the the body authorised to manage
state property in the supervisory boards of joint stock companies.
The training and improvement of the professional skills of nearly
3,000 experts of the State Property Fund of Ukraine and its
regional branches, of the local privatization bodies, and of the
Ukrainian Ministry of De-Statization of Property and
De-monopolization of Production will take place during 1992-1993.
Beginning in 1992 the Cabinet of Ministers of Ukraine and
16
the State Property Fund will select and organize internships abroad
for high level administrators. Later medium and lower-level
administrators will go through the same internships.
5.9 The Cabinet of Ministers of Ukraine, the State Television and
Radio Company of Ukraine, the Ukrainian State Committee on the
Press and the Local Radas of People's Deputies will start work on
informing the population on the pace of the implementation of the
State Program for the Privatization of the Property of State-Owned
Enterprises.
Chapter VI. REQUIREMENTS FOR THE REPUBLICAN (REPUBLIC OF CRIMEA)
AND LOCAL PRIVATIZATION PROGRAMS.
6.1. During a period of one month after the day of the publication
of the State Privatization Program, the privatization bodies of the
Republic of Crimea and the administrative and territorial units
must elaborate the republican (Republic of Crimea) and local
privatization programs for 1992. During this period the Supreme
Rada of the Republic of Crimea and Local Radas of People's Deputies
must approve the republican (Republic of Crimea) and local
privatization programs for 1992. These programs will define the
goals, priorities and scale of the privatization of the property of
the Republic of Crimea and administrative and territorial units.
6.2. The republican (Republic of Crimea) and local privatization
programs should meet the following requirements:
-they will not contradict State Privatization Program, will not
intrduce additional restrictions on privatization of objects, and
will not expand the list of objects which are not subject to
privatization;
-they will ensure the fulfilment of the tasks set for 1992 for the
privatization of the property of state-owned enterprises owned by
the Republic of Crimea and and for communal property ; They will
also establish the cumpolsory quotas for the use of privatization
certificates.
6.3. The above mentioned programs should include:
-the tasks concerning the privatization of property owned by the
Republic of Crimea and by the administrative and territorial units
for 1992, and a foreast for 1993-1994;
-the recommended privatization methods for different groups of
objects;
-the measures for attracting foreign investors in the privatization
process
-the calculation of the expenses incurred in carrrying out these
programs and the procedures for their payment;
-the forecast of revenues from privatization and guidelines for
their use;
-the list of measures necessary for the creation of conditions that
will promote privatization process;
- the list of measures necessary for the organization of the
privatization process.
-establish the zonal coefficients which relate the profitability of
an enterprise to its area of location.
PART U. TASKS AND FORECASTS CONCERNING THE CHANGE IN THE
PROPERTY STRUCTURE.
CHAPTER I. FORMS OF PROPERTY AND FORECAST OF THE DYNAMICS
OF THEIR STRUCTURE.
The implementation of the State privatization policy which followes
the Conception for the De-nationalization and Privatization of
Enterprises, Land and Housing approved by Supreme Rada of Ukraine
will result in a fundamental changing of the property structure in
Ukraine. The dynamics of this process are shown in the table below:
Form of propertyValue fundsof asmain of 5.01.92.Forecast ofpart
.01.92(in%) on 5.SUR,bin%1993'94'95Total6257100---Without
collective f arms, state farms and housing4118100100100100Of which:
state owned non-state owned3960 15896 485 1566 3454 46CHAPTER II.
Privatization TASKSProceeding from the forecasts on the changes in
the property structure in Ukraine, the following privatization
tasks are established for the State Property Fund of Ukraine for
1992, and the forecast for 1993 and 1994:BranchObjects to
Percentage main funds (Accruingbe of asPrivatizedthe value of
05.01.of the 1992.Total)Task 1992forForecast for199319941.
Forestry, wood-processing and pulp and paper industry 2.
Construction materials industry 3. Light industry10 15 1560 60 7080
85 95 
4. Food industry1570955. Construction1555806. Trade and public
catering30901007. Consumer services30901008 .Autotransport1060909.
State Farms (sovkhoz) and enterrpisesservicing
agriculture15609010.Material and technical supply20609011.
Residential and communal services5102012. Other102030CHAPTER III.
FORECAST OF THE REVENUES OF FINANCIAL RESOURSES AND GUIDELINES FOR
THEIR DISTRIBUTON.
The forecast of the money revenues from privatization in 1992 is of
356 billion rubles, of which:
-Privatization certificates  164 billion SUR
-Money to be used in privatization inaccordance with the Ukaz of
the President of Ukraine  21 billion SUR
-Other money 11 billion SUR
The privatization certificates and 90% of the money from the
special privatization accounts used during the privatization
process will be cancelled. It is forseen that the revenues from
privatization for the State Privatization Fund, the Privatization
Fund of the Republic of Crimea, and the Privatization Funds of the
administrative and territorial units will be 50 billion rubles. In
1992 this money will be used in the following manner:
payment of privatization related expenses (preparation of
enterprises for their priavatization)% of totalBillion SUR9.934.695
.credits for the technical rennovation and reconstruction of
privatized enterprises40.820.4financial support for privatization
(Chapter 7 of the Program)0.2O.Imaintenance of the State
Privatization Fund (Personnel;0.010.005
Material and TechnicalNeeds)1.60.8mainetenace oftherepresentative
officesof theState Property Fund^10.05.0job creation
programs^creation
ofmarket8.04.0institutionsandinfrustructurerepayment of
theinternal30.015.0national debt•It is forseen that the the
revenues of freely convertible hard currency recieved from foreign
inverstors will be 250 million US dollars. Up to 50% of the freely
convertible hard curency revenues will go to the Ukrainian Hard
Currency Fund and for crediting the technical renovation and
reconstruction of the privatized enterprises
PART III. MEASURES FOR THE ORGANIZATION OF Privatization PROCESS IN
1992.
CHAPTER 1. THE CREATION OF LEGAL, NORMATIVE AND METHODOLOGICAL
SUPPORTS FOR PRIVATIZATION.
List of ProjectsResponsible for elaborationTerm of elaborat.Term of
approvalList of the legal to be approved byacts theSupreme Rada of
Ukraine1. On the change of organizational legal forms sovkhozesthe
and ofState Prop. Fund, Min. of De-satiz, and De-monopol., Min.
Justice, Min. EconomyNovemberDecember2. On the change
ofthe—-."—-.NovemberDecember
organizational andlegal forms ofconsumer cooperatives——"——October
November3. On the privatizationof the assets of theenter-prises in
thesocio-cultural sphere4. On Trust—"——September
OctoberAssociations5. On Investment Funds—-."——September October6.
On HoldingstlSeptember October7. On the SupremePresidium ofAugust
SeptemberRada's Controllingthe SupremeCommision for Que-Radastions
of Priv-atization8. Statute of the StateCabinet ofJune JuneProperty
Fund ofMinisters,UkraineState PropFund9. On the procedure forState
Prop.September Octoberthe convertibility ofFundthe various types
ofprivatizationsecurities, and theirconversion coefficientsList of
Normative Actsto be approved by theCabinet of Minister ofUkraine10.
Methodology for theState Pro-July Augustvaluation of the stateperty
Fund,property under-goingMin. of De-privatizationstat. and
De-monopol, Min.Finance, Min.Economy, Min.InvestmentM i n
Statistics,Min. Justice11. Decree on theJulyAugustemission and
cir-National Bankculation of privat-State Prop.ization
certificatesFund, Min. ofDe-stat.andDe-monopol.12. Procedure
forState Prop.JulyAugusttransforming state en-Fund, Min.
ofterprises into economicDe-stat.andsocieties during
theDe-monopol.privatization process13. Decree on the ln-Min.
Finance,JulyAugustventarization of StateM i nProperty to be
Priv-Statisticsatized.14. Statute of the Uk-Min. of
De-JulyAugustrainian Ministry of De-stat.and De-statization and
De-monopol .monopolization of Pro-duction15. Decree onState
Prop.JuneJulyestablishment andFundpublication of theState
PrivatizationInfornmation Bulletin16. Procedure for theMin. of
Int.JuneJulycompilation andAffairs,revision of the list ofSavings
Bank,«Ukrainian citizens thatLocal Radasare entiltled to
holdprivatization cert-ificates (to open pri-vatization
depositaccounts)17. Decree on suplyingMin.
Finance,OctoberNovemberthe application formsMin. Economy,for the
privatizationNationalcerificates and otherBank, Savingssuch
privatizationBank, StateformsImport-ExportBank
18. Procedure for accepting and and distributing the hard currency
recieved from privatization.Min. Finance, Min. Economy, State Prop.
FundAugustSeptember19. Conditions for the granting of credit during
the privatization process.National Bank, Min.
FinanceAugustSeptember20. Statute of the State Privatization
FundState Prop. Fund, Min. Economy, Min. FinanceAugustSeptemberList
of normative documents to be approved by the State Property Fund21.
Statute on the Regional Branches of the State Property Fund / 22.
Statute on the Representative Offices of the State Property
FundState Prop. Fund, Min. Finance, Min. Justice. State Prop. Fund,
Min. Finance, Min. Justice.June JuneJuly July23. Prototype Statute
for the privatization bodies of the admin-i start ive and
territorial unitsState Prop. Fund, Min. Justice.JulyAugust24.
Statute on the Privatization CommissionsState Prop. Fund, Min. of
De-Stat. and De-monopol., Min. ^JusticeJulyAugust25. Regulations on
the implementation of the methods of privatizing the property of
state enterprisesJulyAugust26. Regulations forState Prop.JulyAugust
granting to specializedFund, Min. ofcompanies andDe-Stat.
andinstitutions, on aDe Monopol.,comet i t i ve bas i s,
theNational Bankright to conduct thesale of objects
ofprivatizationJulyAugust27. Regulations on theState Prop.Compel i
t i on Commi ssi onFund, Min. offor the Sale ofDe-Stat,
andPropertyDe-monopol.,Min. Economy,Min. Finance,Min. JusticeState
Prop. JulyAugust28. Procedure forFund, Min.estabi ising andDe-Stat,
andregistering the buyerDe-monopol,associationduring theMin.
Justiceprivatization processState Prop. JulyAugust29. Regulation
onFund, Min.Privatization plansDe-Stat. andDe-monopol.,Min.
EconomyState Prop. JulyAugust30. Procedure forFund, Min.handing in
and re-Justice, Min.vi ewe ing
privatizationFinance.applicationsList of NormativeDocuments to
beapproved by the StateProperty Fund and theNational BankState
Prop. JulyAugust31. On the size of theFund, Min.coefficient
forEconomy,calculating the valueNational Bankof objects
whenprivatization takesplace with theparticipation offoreign
investorsState Prop. JulyAugust32. Procedure forFund,paying for
objectsNational Bankacquired during
privatizationList of NormativeDocuments to beapproved by
theNational Bank.NationalBankJulyAugust33. Procedure foropening
theprivatization depositaccents and makingpayments from
them-"-SeptemberOctober34. Conditions for thesaving, circulation
andcancellation of theprivatizationcertificates, and theprocedure
for theirdistributionList of Normative actsto be approved by
theSupreme Rada of theRepublic of Crimea, and
the Local Radas ofPeople's DeputiesSupremeRadaJulyNo lalei35. The
Privatizationî ft h ethan ]Programs of theRepublicofmonth
af-Republic of Crimea andCrimea,Localter thethe Local
PrivatizationradasofapprovalProgramsPeople ' sof
theDeputiesStatePrivati-zationProgramSupremeRadaJulyAugust36.
Statutes on theî ft h ePrivatization Bodies ofRepublicofthe
Republic of CrimeaCrimea,Localand the administartiveRadasof
and territorial unitsPeople ' sDeputiesSupremeRadaJulyAugust37.
Statute on theî ft h ePrivatization Funds ofRepubl icofthe Republic
of CrimeaCrimea,Localand the administartiveRadasof
and territirial units PeoplesDeputies
CHAPTER 2. Creation of network of state
privatizationBodies.Contents of measureBodies in Term of charge of
fulfilment fulfilment1. Creation of regional bran-State Prop.
Fund,1992ches and represent ive officesLocal Radas ofof th State
Pproperty FundPeople's Deputiesof Ukraine2.Creation of
privatizationVerkhovna Rada of1992institutes of the Republic
ofRepublic of Crimea;Crimea and the administrativeLocal Radas
ofterritorial unitsPeople's Deputies3. Providing the branches
ofCouncil of Ministers1992the Fund, and privatizationof Republic of
Crimea;institutes of Republic oflocal bodies of stateCrimea, and
the administrativeexecutive powerand territorial units withpremises
and financial resourses.