The Cabinet of Ministers of Ukraine approved a state property policy aimed at improving the management of state assets and attracting investments during a meeting on Friday, as reported on the Ministry of Economy's website.
According to the agency's information, the document is crucial for implementing the provisions of law №3587-IX, which enhances corporate governance and incorporates OECD principles. The Ministry of Economy developed this policy over the past nine months following the adoption of this law.
"The state property policy defines the government's role in managing state-owned enterprises, identifies which companies are strategic for the country and the tasks they should perform, and introduces high standards of corporate governance within the public sector. Additionally, this document introduces a clear and transparent remuneration policy for the executives and members of the supervisory boards of state companies for the first time in Ukraine, as well as a dividend policy," said Ukraine's First Deputy Prime Minister of Economy, Yuliya Svyrydenko, in the announcement.
She noted that these measures would enhance the efficiency of managing state assets and attract investments to the economy.
The ministry explained that the state property policy provides a clear definition of the sectors where the state should maintain its presence, as well as the optimization of the portfolio of state assets (including privatization or liquidation of enterprises that are not strategically important for the state).
The document also outlines the introduction of modern corporate governance standards based on OECD principles, which includes the establishment of independent supervisory boards, the development of criteria for mandatory formation of these boards, plans for improving efficiency, preserving and increasing asset value, reporting, and defining the objectives of state companies.
Furthermore, the policy includes rules for organizing governance, distributing functions, and capabilities between state authorities and companies.
It is emphasized that 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 International Monetary Fund (IMF). The document takes into account the best global practices, as it was developed in consultation with international partners.
Representatives from the EBRD, EU, IMF, World Bank, OECD, and USAID/Ukaid (SOERA project) were among those involved in the development of the policy.
The Ministry of Economy also added that after the adoption of the state property policy, the next steps will include triage—identifying and categorizing companies into those that will remain state-owned 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 efforts to delineate the special responsibilities of state companies.