The government has approved the policy on state ownership.

The Cabinet of Ministers has approved a state property policy aimed at enhancing the management of state assets and attracting investments.

This was reported by the press service of the Ministry of Economy.

The document is crucial for implementing the provisions of Law No. 3587-IX on improving the management of state enterprises and aligning Ukrainian legislation with the standards of OECD (Organisation for Economic Co-operation and Development) countries. It is noted that the Ministry of Economy has been developing this policy over the past nine months following the adoption of this law.

“The state property policy defines the role of the government in managing state companies, outlines which companies are strategic for the country and what tasks they should perform, and introduces high standards of corporate governance in the public sector of the economy,” stated Minister of Economy Yulia Svyrydenko. “Along with this document, Ukraine is introducing for the first time a clear and transparent remuneration policy for the executives and members of supervisory boards of state companies, as well as a dividend policy. These measures will enhance the effectiveness of state asset management and attract investments into the economy.”

The state property policy includes:

• a clear definition of the sectors of the economy where the state should maintain its presence;
• optimization of the state asset portfolio, including privatization or liquidation of enterprises that are not strategically important for the state;
• introduction of modern corporate governance standards based on OECD principles, which among other things includes the establishment of independent supervisory boards;
• criteria for the mandatory formation of supervisory boards;
• plans to enhance efficiency, preserve, and increase the value of assets;
• rules for reporting and defining the objectives of state companies;
• rules for organizing management, distributing functions, and powers among state bodies and companies.

The adoption of the state property policy is one of the indicators of the “Ukraine Plan for Ukraine Facility” and a beacon of the memorandum with the IMF.

After the adoption of the state property policy, the next steps will involve conducting a triage – determining and categorizing companies into those that will remain in state ownership and those that will be privatized or liquidated.

Additionally, the formation of supervisory boards in state companies that meet the criteria will take place, along with work on delineating the special responsibilities of state companies.