Business news from Ukraine

Cabinet of Ministers of Ukraine has reduced list of public procurement without tender

Government Resolution No.157 of February 17 has amended the procedure for public procurement, in particular, reduced the list of exceptions when it is allowed to enter into direct contracts without a tender, the Ministry of Economy said with reference to First Deputy Prime Minister – Economy Minister Yulia Sviridenko.
“We are gradually returning to the mandatory use of Prozorro in procurement. Thus, by this decision we have significantly reduced the list of exceptions when it is allowed to enter into direct contracts without a tender, obliged to publish more information on direct purchases”, – noted Sviridenko.
Ministry of Economy also pointed out that there are conditions for publishing a report on the execution of the contract on procurement in the electronic procurement system (EPS), clarified the information that customers may not publish in the annual procurement plans and the announcement of the bidding, if such information poses a security risk.
In addition, there is an obligation to publish the texts of contracts and all annexes thereto in the case of procurement without the use of Prozorro, but it is still possible to hide sensitive information about the supplier, the address of delivery, if such information poses a security risk, says the Ministry of Economy.
At the same time, it is provided that in the case of procurement, the value of which is less than 50 thousand UAH, without the use of an electronic procurement system, the customer shall not make public in the electronic procurement system the report on the contract of procurement, concluded without the use of an electronic system of procurement.

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UKRAINE MIGHT PROHIBIT COMPANIES OF EX-OWNERS OF BANKRUPTED BANKS TO PARTICIPATE IN PUBLIC PROCUREMENT – IMF MEMORANDUM

Ukraine intends to prohibit former owners of failed banks from participating in public procurement and privatization until they take measures to pay off their debts to the Deposit Guarantee Fund, according to a memorandum signed between Ukraine and the International Monetary Fund (IMF).”We will specifically enumerate measures that can be taken to end the state’s business-as-usual with former owners of failed banks until the latter have taken actions to satisfy their debts to the Deposit Guarantee Fund, for example, by prohibiting former bank owners of resolved banks, their related parties, and entities controlled by them, with legally ascertained debts to the Deposit Guarantee Fund, from participating in public procurement and privatization processes,” the document said.According to it, Ukraine is stepping up its efforts to boost asset recovery from the former owners and related parties of failed banks to reduce the cost of bank failures to Ukrainian taxpayers.”We recognize the need to take a more comprehensive approach to pursue all commercial and legal avenues available to recover assets from failed banks and hold former owners and former managers of failed banks accountable for losses. This comprehensive approach would demonstrate a strong political commitment and provide a consolidated view on Ukraine’s asset recovery strategy, on policy measures that will fix institutional, legal and coordination gaps forestalling recoveries with due attention,” the memorandum said.In addition, it undertakes to ensure the impossibility of interfering with the work on the return of PrivatBank’s assets.The new structural benchmark is to prepare a comprehensive asset recovery strategy paper and action plan, which will be adopted and published by the Cabinet of Ministers by end-February 2022.

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