Sale of real estate belonging to state enterprises
Draft law for compulsory purchase
Sale of real estate belonging to state enterprises
On October 2 2011 the Law on the Introduction of Amendments to Certain Legislative Acts of Ukraine as to Alienation of Property of Economic Entities in the Public Sector of Economy (3713-VI) came into force.
The law gives the State Property Fund responsibility for organising the sale of real estate belonging to state commercial enterprises, and stipulates that the procedure for organising sales falls to be determined by the Cabinet of Ministers. Funds received from the sale of real estate belonging to state enterprises, minus the property's depreciated book value, must be transferred to the general funds of the state budget (unless another legislative regulation stipulates otherwise). This marks a change in policy, as until now all funds received from the sale of fixed assets belonging to state commercial enterprises have been used according to the enterprise's financial plan.
Draft law for compulsory purchase
In a related development, Draft Law on Amendments to the Law on Alienation of Land Plots, Other Real Estate Objects Located Thereon Being in Private Ownership for Public Needs or Due Motives of Public Necessity (9308) has been presented to Parliament. The draft law envisages the possibility of compulsory alienation of land plots and other property for public needs into private ownership. Legislative changes will make it possible for persons that hold a special permit for subsurface use to purchase land plots, provided that prior remuneration is paid for full price of the alienated property.
For further information on this topic please contact Timur Bondaryev at Arzinger by telephone (+380 44 390 5533), fax (+380 44 390 5540) or email ([email protected]).