The Constitutional Court launched a proceeding on the legality of the privatization of “Ukrrudprom”

The Constitutional Court has launched a proceeding on the legality of the privatization of the SJSC “Ukrrudprom” following the petition of 54 MPs.

I am grateful to my colleague Pavlo Rizanenko for an active and principled position on this issue.

Let me remind you that in 2004, shortly before the presidential election and the first Maidan, the parliament adopted a separate special law “On the peculiarities of privatization of enterprises of the State Joint-Stock Company “Ukrrudprom”.

In accordance with it, the shareholders, who owned 25% of the authorized capital of enterprises, had the right to buy out the rest of the shares without holding a competition.

This limited the competition and did not allow other companies to compete for the asset under fair and transparent rules, and did not let the state receive a higher price for the sale.

These were the structures of Rinat Akhmetov, Vadym Novynskyi, and Ihor Kolomoiskyi that became beneficiaries of such a decision. They bought out the shares of the Ukrrudprom companies at a ridiculous price.

Back in 2015, the NABU started an investigation into this issue following the appeal of MPs. However, it moved slowly, and at the end of 2017, the case was closed. But at the beginning of 2018, the investigation was resumed.

That is why, taking into account the delays in the investigation, the MPs who are not indifferent decided to try an alternative way and appealed to the Constitutional Court asking whether the adoption of such a law was legal altogether? Now the judges will have to solve this matter.

We should also note one important thing.

Some people are very fond of telling an oligarchic mantra that ostensibly calling into question the legality of the results of privatization can “worsen the investment climate” and “scare off investors”.

However, can the situation when everything is done in such a way to suit some specific domestic oligarchs and their “friends” be called a “favourable investment climate”?

I don’t think so.

The need for justice is never past due.

Given the fact that the new presidential elections and the next stage of privatization of strategic state assets, such as Kharkiv Turboatom, are coming, I will carefully monitor the situation as a member of a special parliamentary commission on privatization.

Unfortunately, the pre-election sale is a tradition that has proved its inability to provide competitive privatization conditions and adequate state revenues for the sold assets. It’s time to change something where.

Viktoriya Vojtsitska
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