The development of regulations on establishing Ukrainian state-owned enterprises abroad

Abstract

This thesis points out selected key issues and challenges that relate to Ukrainian regulations on establishing state-owned entities in foreign jurisdictions. State-owned enterprises are increasingly prominent actors in international markets and their proper regulation is crucial to maintaining an investment environment and provide efficient owning of public assets. For the purpose of this recearch any corporate entity recognised by national law as an enterprise, and in which the state exercises ownership and control, should be considered as an state-owned. The general legal status and issue of SOEs incorporation are governed by laws and regulations which are applicable across all industries, including the Civil Code of Ukraine, the Economic Code of Ukraine, the Law on Management of State-owned Assets and the Law on Privatisation of State-owned Property. In addition, there are various laws and regulations which apply to specific sectors, industries, types of SOEs and individual SOEs, such as aircraft industry, military defense complex, oil and gas sector etc. Despite that currently Ukraine is lacking a strategic documents and the specific laws which would identify SOEs established abroad. Absence of coherent legislation on incorporation and operations of foreign public sector entities results in improper collection precise and timely data on of these companies, their assets, finances and inability to exercise efficient control. The research will outline that there is no single specialized and centralized ownership function entity responsible for continuous professional administration of state-owned assets. Ownership entities (Cabinet of Minister of Ukraine, ministries, other executive authorities, national collective bodies, the State Property Fund of Ukraine, economic structures, state holding companies, National Academy of Sciences, state corporations) have right to make decisions on establishment, reorganization and liquidation of state-owned enterprises, establishments and organizations, including companies in foreign jurisdictions. Key words: state-owned enterprises, state-owned multinational companies, state sector of economy, unitary state enterprises, state assets governing, establishing state-owned entities abroad, OECD Guidelines on Corporate Governance of State-Owned Enterprises.