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State property alienation procedure

06.06.2007

The Procedure applies to alienation of any property transferred to:

  • state enterprises, state commercial enterprises (associations thereof), institutions and organizations;
  • the National and branch academies of science to free use.

State properties means, in the context of the Procedure, tangible assets (property) being fixed assets under the law.

Property alienation means transfer of property title to any legal entity or individual under such procedure and in such manner as provided by this Procedure.

Pursuant to the Procedure, property is alienated by sale thereof, combining the participants' contributions (to a common company) under the joint activity agreement.

Any legal entity having any property on its balance sheet alienates it as the consent or authorization from the asset’s manager representing the owner has been received and performs his functions to the extent determined by the statutes.

The Procedure does not apply to alienation of:

  1. integrated property complexes of state enterprises and their structural divisions;
  2. any individually determined property included, under the established procedure, into the lists of properties to be privatized pursuant to the privatization law;
  3. any property which may not be alienated in accordance with the law;
  4. any property, alienation procedure for which is determined by a separate law;
  5. any property which has not formed a part of share capital of any legal entities in privatization (corporatization) but is recorded on their balance sheets and may be alienated by privatization;
  6. any property leased within integrated property complexes of any state enterprises and organizations (their structural divisions).

Any property offered for alienation is assessed under the laws concerning property assessment, property titles and professional assessment.

Any property is alienated by sale thereof on a competitive basis through stock exchanges, auctions or tenders.

Information on any property being subject to sale at auction or by tender should be published not later than 30 calendar days prior to the date of such auction or tender in printed media.

Such auction or tender should be held if there are at least two participants.

The Resolution comes into effect from June 6, 2007.

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