The First Deputy Head of the State Property Fund of Ukraine Leonid Antonienko has participated in the legal advisers’ forum
On October 7, 2020, the First Deputy Head of the State Property Fund of Ukraine Leonid Antonienko participated in the VII annual legal advisers’ forum in Kyiv.
During the forum Leonid Antonienko gave an interview, in which he told about the main SPFU’s achievements in transformation of state property leasing field.
“The main state property leasing reform’s achievement is implementation of the real market mechanisms in relations between the State and business and also overcoming the main corruption risks, typical for the state property leasing field”, the First Deputy Head of the State Property Fund of Ukraine informed.
Leonid Antonienko added that the State Property Fund of Ukraine has lost the right to disqualify potential state property’s landlords and buyers. Anyone wishing has a right to take part in e-auction. Instead of this the Fund verifies only a winner and the basis for disqualification are significantly shortened.
“Essentially the main basis that remains is non-disclosure by the auction’s winner, being a legal entity, who is a beneficial owner. The lease procedures are being significantly shortened. Thus, market property valuation with attraction of independent appraisers during particular competitions is not required by the new legislation in most cases”, Leonid Antonienko emphasized.
Also during the interview, he emphasized the main advantages which business gets when leasing exactly the State’s property.
“Potential landlord participates in a fair e-auction from his computer, having equal start opportunities with other e-auction attendees to obtain in lease the object he’s interested in. If he wins, he concludes a property lease agreement for 5 years with opportunity the first time to prolong the agreement, out of e-auction, for another 5 years. In a total that is 10 years of the State-guaranteed premises lease”, Leonid Antonienko highlighted.
He also stated that in most cases the targeted lease object’s use will be defined not by an official, but by a landlord, at his discretion. The rental charge is indexed by annual inflation rate predictably one time a year and it makes enable for a landlord to plan his activities ahead.
Responding to a question from what sources the potential landlord can find out about proposal on state property leasing, the First Deputy of the State Property Fund of Ukraine noted: “Today there is the vacant state property lease objects’ database on the Fund’s site. There are more than 500 such objects and all of them step by step will be put up for e-auctions in Prozorro.Sale. Anyone wishing to lease the state property now can enter the database, learn objects and prepare to participate in e-auctions. Also the State Property Fund of Ukraine has more than 11 thousand acting contracts of so-called “commercial” state property lease. The most of these contracts are to be prolonged through e-auctions after the end of contract’s period under the new lease legislation. The primary right to continue contracts is guaranteed for the current landlords”.