President Viktor Yushchenko chaired a meeting of National Security and Defense Council. The meeting was mainly dedicated to privatization policy. President's press office reports.

Analyzing privatization policy, which was been conducted so far the President noted that it failed to render any positive effects on state’s economy. Viktor Yushchenko pointed the imperfection of the legislation regulating privatization policy. It creates conditions for shady sale of enterprises through fake and corrupt auctions for understated prices. As an example the President reminded of faulty privatization of Lugansk locomotive factory.

Besides privatization policy is still conducted on foundations stated by State privatization program for 2000-2002. According to Viktor Yushchenko that document’s regulations are long outdated and don’t meet national economy’s modern needs and goals. Regarding that the President informed that according to his directions a working group has already prepared a document called Conceptual foundations of modification of privatization legislation. Based on the document State Property Fund is expected to prepare in a one month term the needed draft laws along with the new State privatization program for 2008-2013.

President Yushchenko also expressed concerns about privatization cases when decisions on the expediency of certain enterprises sales were made based on possible amounts of acquired funds, which later could be used for financing state budget deficit, rather than on strategic state interests. As an example he gave the situation with Kryvy Rih ore mining and processing enterprise.

According to Viktor Yushchenko’s propositions future decisions on privatization policy should be aimed at systematic opposition to attempts of shady amortization of state property and at optimization of state property management. The President also insisted that the Verkhovna Rada adopted a clear-cut schedule for privatization which would make this policy insensible to political changes.


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