The Cabinet of Ministers has drafted a new bill, which proposes to simplify the classification of objects and reduce the number of auctions. CASE Ukraine`s CEO Dmytro Boyarchuk comments the case for the ‘Liga.Financy’ media website.
‘In practice, the norm that the process of privatization is tied to the British law for the more effective protection of investors` rights does not make a difference. Because even if you have the decision of the London court, which proves you are right a thousand times, you still have to come to Ukraine. In addition, guarantees that the Ukrainian courts will pay attention to this decision are absent in principle’, the expert says.
At the same time, the bill offers other solutions. He sets a limit of up to 3 years for a possible appeal of sales results. It establishes a prohibition to initiate bankruptcy proceedings within a year from the moment of sale of an object in order to allow an investor to pay off debts and not lose the company through creditors.