facilities of local engineering infrastructure including networks, structures, citizens and residents of an Aggressor State; OUT-OF-TENDER PROCEDURES: equipment related to the supply of water, gas, heat, sewage, specially companies registered under the legislation of countries included in the FATF list Purchase of a leased Asset by the relevant tenant; PRIVATIZATION OF STATE designated waste burial sites; that do not cooperate in the field of anti-money laundering, as well as affiliates Purchase of shares by other shareholders with preemptive right; and water storage reservoirs and canals, hydraulic engineering structures, elements of such companies; AND MUNICIPAL ASSETS of melioration systems; Purchase of an Asset in cases when only one bidder has applied for an LP or SP companies and individuals under sanctions, as well as their affiliates; nuclear materials, installations and facilities, nuclear power plants, certain types tender. of hydroelectric power plants and power grids, property and systems belonging companies where information about the beneficial owners of which is not INTRODUCTION to the unified energy system of Ukraine; disclosed; and scientific objects included in the list of National Treasures; individuals and companies who previously purchased an Asset only for the MAIN PRIVATIZATION STEPS THROUGH TENDER PROCEDURES The Cabinet of Ministers of Ukraine (“Government”) regards privatization as a certain types of sports infrastructure facilities; relevant purchase agreement to be terminated due to default by a purchaser as way to generate investment and simultaneously reduce costs for the operation of well as their affiliates. state educational institutions; and loss-making state and municipal companies. state healthcare institutions, etc. Foreign investors have the same rights and obligations as Ukrainian investors. The only Privatization has therefore consistently been seen as a priority, with the difference is in the list of documents which must be submitted for an application. Government looking to improve the relevant procedures in order to simplify All Assets are divided into 2 groups with different procedures of privatization, namely: privatization procedures and increase transparency. “assets of large privatization” (”LP”) which include (i) property complexes and TYPES OF PRIVATIZATION PROCEDURES (ii) shares of state/municipal companies with a total value exceeding UAH 250 million; and ASSETS FOR PRIVATIZATION Privatization of Assets may be carried out through: “assets of small privatization” (”SP”) which include movable assets, real estate, Legislation permits the privatization of all state or municipal property/assets unfinished construction, shares and other assets not included in the LP category. TENDER PROCEDURES: (“Assets”), except for a number of categories including: Auction without additional conditions – an auction in which an Asset is sold to the highest bidder; Assets belonging to state and municipal authorities, which are used for the POTENTIAL BUYERS OF ASSETS functioning of such authorities; Auction with additional conditions – an auction in which an Asset is sold to a bidder who offered the highest price and international reserve systems and stocks; Ukrainian and foreign individuals and companies can participate in tenders, except for: undertook to fulfill additional commercial/social obligations; government and special communication assets and devices; Auction with reduction of initial starting price – an auction Assets of the Public Joint Stock Company "Public Broadcasting Company Of a state which is recognized by the Verkhovna Rada of Ukraine as an aggressor format which is used when an Asset is not sold through an Ukraine" and State Enterprise "The International Broadcasting Multimedia state (“Aggressor State”) English auction; Platform Of Ukraine"; companies in which an Aggressor State is a participant or beneficial owner; Auction with step-by-step reduction of starting price – a subsoil, minerals, water, forest and other natural resources; companies where a beneficial owner of more than 10% of shares is a resident special type of auction which is used in SP-tenders when an state registers, documents from archives, libraries and film funds, Assets of an Aggressor State; Asset is not sold through an English auction or Auction with and data belonging to the State Cartographic and Geodetic Fund of Ukraine; reduction of initial starting price; objects of culture, history, art; certain types of architectural category and companies registered in offshore zones with a non-transparent ownership structure; Auction with analysis of bids – a special type of auction which items belonging to the national nature reserve fund; is used in LP-tenders when an Asset is not sold through an English companies of the space industry; companies originating from an Aggressor State; auction or an Auction with reduction of initial starting price state highways, subways, railway infrastructure facilities, aerodrome facilities, seaports, port infrastructure; facilities of local engineering infrastructure including networks, structures, citizens and residents of an Aggressor State; OUT-OF-TENDER PROCEDURES: equipment related to the supply of water, gas, heat, sewage, specially companies registered under the legislation of countries included in the FATF list Purchase of a leased Asset by the relevant tenant; designated waste burial sites; that do not cooperate in the field of anti-money laundering, as well as affiliates Purchase of shares by other shareholders with preemptive right; and water storage reservoirs and canals, hydraulic engineering structures, elements of such companies; of melioration systems; Purchase of an Asset in cases when only one bidder has applied for an LP or SP companies and individuals under sanctions, as well as their affiliates; nuclear materials, installations and facilities, nuclear power plants, certain types tender. of hydroelectric power plants and power grids, property and systems belonging companies where information about the beneficial owners of which is not INTRODUCTION to the unified energy system of Ukraine; disclosed; and scientific objects included in the list of National Treasures; individuals and companies who previously purchased an Asset only for the MAIN PRIVATIZATION STEPS THROUGH TENDER PROCEDURES The Cabinet of Ministers of Ukraine (“Government”) regards privatization as a certain types of sports infrastructure facilities; relevant purchase agreement to be terminated due to default by a purchaser as way to generate investment and simultaneously reduce costs for the operation of well as their affiliates. state educational institutions; and loss-making state and municipal companies. state healthcare institutions, etc. Foreign investors have the same rights and obligations as Ukrainian investors. The only Privatization has therefore consistently been seen as a priority, with the difference is in the list of documents which must be submitted for an application. Government looking to improve the relevant procedures in order to simplify All Assets are divided into 2 groups with different procedures of privatization, namely: privatization procedures and increase transparency. “assets of large privatization” (”LP”) which include (i) property complexes and TYPES OF PRIVATIZATION PROCEDURES (ii) shares of state/municipal companies with a total value exceeding UAH 250 million; and ASSETS FOR PRIVATIZATION Privatization of Assets may be carried out through: “assets of small privatization” (”SP”) which include movable assets, real estate, Legislation permits the privatization of all state or municipal property/assets unfinished construction, shares and other assets not included in the LP category. TENDER PROCEDURES: (“Assets”), except for a number of categories including: Auction without additional conditions – an auction in which an Asset is sold to the highest bidder; Assets belonging to state and municipal authorities, which are used for the POTENTIAL BUYERS OF ASSETS functioning of such authorities; Auction with additional conditions – an auction in which an Asset is sold to a bidder who offered the highest price and international reserve systems and stocks; Ukrainian and foreign individuals and companies can participate in tenders, except for: undertook to fulfill additional commercial/social obligations; government and special communication assets and devices; Auction with reduction of initial starting price – an auction Assets of the Public Joint Stock Company "Public Broadcasting Company Of a state which is recognized by the Verkhovna Rada of Ukraine as an aggressor format which is used when an Asset is not sold through an Ukraine" and State Enterprise "The International Broadcasting Multimedia state (“Aggressor State”) English auction; Platform Of Ukraine"; companies in which an Aggressor State is a participant or beneficial owner; Auction with step-by-step reduction of starting price – a subsoil, minerals, water, forest and other natural resources; companies where a beneficial owner of more than 10% of shares is a resident special type of auction which is used in SP-tenders when an state registers, documents from archives, libraries and film funds, Assets of an Aggressor State; Asset is not sold through an English auction or Auction with and data belonging to the State Cartographic and Geodetic Fund of Ukraine; reduction of initial starting price; objects of culture, history, art; certain types of architectural category and companies registered in offshore zones