The Justice Ministry has a legal support with regard to illegally privatized objects, to return state enterprises to the state, Justice Minister Roman Zvarych informed journalists during a press conference. He commented on discussions, existing around court rulings with regard to the Kryvorizhstal and the Nikopol Ferro Alloy Works.

Roman Zvarych underscored that the Justice Ministry considers that during privatization of those enterprises there was a severe violation of acting legislation, primarily of such principles as transparency, openness and competitiveness.

In particular, a sale-purchase agreement on the Kryvorizhstal was concluded not following 75 days since information was announced, but following 30 days, which made it impossible to create a competition around sale of the enterprise, the Justice Minister believes. He also said that during privatization of the Nikopol Ferro Alloy Works this norm was also violated and a number of other violations were made.

In particular, a control packet of shares 50 percent + 1 was divided into 25 percent and 25 percent + 1, which is inadmissible, Roman Zvarych underscored. Also, inadmissible restrictions were established with regard to natural persons, who would be entitled to purchase the enterprise: only those persons were allowed to participate in the tender who were engaged in similar matters in the course of three years.

The Justice Minister explained why the state expressed a distrust toward the previous panel of judges, who had to consider a case concerning the Nikopol Ferro Alloy Works. The main thing is that all judges examined exclusively cases about bankruptcy and they never considered cases about illegal privatization.

Roman Zvarych also emphasized that the state has to return to former investors the funds, which were spent by them. Due to this reason, in the Minister's opinion, it is necessary to again display shares of those enterprises for sale.


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