The purpose of this Law is to regulate relations in the field of privatization of state property.

The privatization of state-owned property on the basis of judicial acts, the privatization of the state housing stock, the privatization of non-agricultural land (with the exception of the privatization of state-owned property complexes (enterprises), buildings and structures, objects of unfinished construction together with land plots) are regulated by separate laws of the Republic of Uzbekistan.

Privatization of state real estate objects located in the territories of small industrial zones and youth industrial and entrepreneurial zones shall be carried out in accordance with separate legislative acts of the Republic of Uzbekistan.

Legislation on the privatization of state-owned property consists of this Law and other legislative acts.

If an international treaty of the Republic of Uzbekistan establishes rules other than those provided for by the legislation of the Republic of Uzbekistan on the privatization of State property, the rules of the international treaty shall apply.

The privatization of state-owned property of the Republic of Uzbekistan located abroad shall be carried out considering this Law and the legislation of the state in which the property is located.

The following basic concepts are used in this Law:

State-owned real estate objects — property complexes (enterprises), buildings and constructions, including objects of unfinished construction, owned by the state on the right of ownership;

Privatization of state-owned property — the sale of state-owned property to individuals and non-state legal entities in accordance with the procedure provided for by this Law;

Bidder — the applicant, participating in the public auction, or his/her authorized representative;

Professional consultant — a legal entity or individual (including a foreign legal entity or individual) providing services in various areas of consulting services, including financial, investment, economic and (or) legal issues, engaged in order to organize preparations for the process of privatization and sale of privatized state property, as well as the commission of related the number of transactions;

Applicant — an individual or non-governmental legal entity (including a foreign legal entity or individual) who has submitted an application for participation in public auctions for privatized state property;

Buyer — a person or his/her representative, who has concluded a purchase and sale agreement or an exchange transaction for the privatization of state-owned property with an Authorized government body or its territorial administrations or a person authorized by it in accordance with this Law;

Business entity — a joint stock company, a limited liability company.

The main principles of privatization of state-owned property are:

legality;

openness and transparency;

accountability;

ensuring an equal competitive environment;

the inadmissibility of corruption.

The privatization of state-owned property must be carried out in accordance with the Constitution of the Republic of Uzbekistan, this Law and other legislative acts.

The process of privatization of state-owned property, including information on privatized state-owned property, should be open and transparent.

State bodies shall be obliged to create the possibility of free access to information about privatized state-owned property in the ways provided for by legislation on the openness of the activities of public authorities and management.

The Authorized government body shall report on the state of privatization of state-owned property to the President of the Republic of Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan at least once a year, and upon request — to the Chambers of the Oliy Majlis of the Republic of Uzbekistan.

The territorial departments of the Authorized government body shall report at least once a year on the state of privatization of municipal property in the relevant territory to the Chairman of the Council of Ministers of the Republic of Karakalpakstan, the khokims of the regions and the city of Tashkent, as well as to the Jokargy Kenes of the Republic of Karakalpakstan, the Kengashes of People's Deputies of the regions and the city of Tashkent.

The applicant who has expressed a desire to privatize state-owned property has equal rights with other applicants to participate in the privatization process in the cases provided for by this Law.

The Authorized government body and (or) its territorial administrations create conditions that ensure healthy competition, equality and impartiality for applicants in relation to them.

The inadmissibility of corruption in the process of privatization of state-owned property shall be performed by ensuring:

elimination of grounds that may lead to a conflict of interest;

the widespread introduction of remote forms of interaction between government agencies, individuals and non-governmental legal entities in the process of privatization of state property;

creating equal conditions for applicants in the process of privatization of state property;

implementation of the procedure for the privatization of state-owned property in accordance with the requirements established by this Law.

The objects of privatization of state-owned property shall be:

state-owned real estate objects;

government shares (shares, shares);

state institutions.

State property, with the exception of non-privatized state-owned property provided for by the legislation on the management of state property, may be privatized in whole or in part.

The subjects of privatization of state-owned property are the Authorized government body and (or) its territorial administrations and buyers.

In the case of privatization of state property, applicants may not be persons who, in accordance with the legislation, shall be prohibited from participating in the process of privatization of state property, as well as applicants whose participation may lead to unfair competition, and persons affiliated with them.

Cabinet of Ministers of the Republic of Uzbekistan shall:

coordinate the activities of state bodies in the privatization of state property;

approve the program of privatization of republican property in accordance with the established procedure, with the exception of state-owned property specified in the fourth paragraph of the first part of this article;

submit for approval to the President of the Republic of Uzbekistan a program for the privatization of large enterprises with the participation of the state, the list of which is approved by the President of the Republic of Uzbekistan.

The Cabinet of Ministers of the Republic of Uzbekistan may exercise other powers in accordance with the legislation.

By decision of the President of the Republic of Uzbekistan, a commission or a working group may be established under the Cabinet of Ministers of the Republic of Uzbekistan in order to coordinate and improve the efficiency of the privatization of state property.

The State Assets Management Agency of the Republic of Uzbekistan is an Authorized government body in the field of privatization of state-owned property (hereinafter referred to as the Authorized government body).

The Authorized government body shall:

conduct a unified state policy in the field of privatization of state property;

organize the work on the privatization of state-owned property in accordance with the programs of privatization of state property;

work as a seller of republican property, while his territorial administrations also perform the function of a seller of municipal property, and also signs contracts for the purchase and sale of privatized state property, respectively;

form a program for the privatization of republican property and submits it for approval to the Cabinet of Ministers of the Republic of Uzbekistan;

organize the implementation of the privatization program;

determine the terms and methods of privatization of state property, if necessary, makes changes to them by publishing relevant information;

determine the starting price of the state-owned property to be put up for auction, except for putting it up for auction without announcing the starting price based on the methods of sale;

engage another appraisal organization to carry out the verification of reliability of the appraisal report in cases stipulated by the legislation;

define the requirements and criteria for participants based on the method of privatization of state property;

implement measures aimed at increasing the investment attractiveness of privatized state property;

organize the process of selling state-owned property in accordance with the chosen method of privatization, including involving the operator of the electronic trading platform (hereinafter referred to as the operator) based on the chosen method of privatization;

monitor the privatization processes in accordance with the concluded agreements;

participate in the process of privatization of state property, concludes an agreement with professional consultants in accordance with the established procedure.

The Authorized government body may also exercise other powers in accordance with the legislation.

Based on the decisions of the President of the Republic of Uzbekistan, specially authorized state bodies entrusted with the task of reforming individual large enterprises with the participation of the state shall:

carry out their activities on the basis of legislation on the management of state property;

in coordination with the Cabinet of Ministers of the Republic of Uzbekistan, they submit proposals to the President of the Republic of Uzbekistan on privatization or other disposal of state shares in the authorized funds (authorized capitals) of large enterprises with state participation, which were transferred to them for reform.

Programs for the privatization of state-owned property shall be developed by the Authorized government body and (or) its territorial administrations on the basis of proposals from state bodies and local public authorities, as well as individuals and non-governmental legal entities.

Programs for the privatization of state-owned property shall be formed by:

Authorized government body — programs for the privatization of republican property;

territorial administrations of the Authorized government body — programs for the privatization of municipal property.

State property, including state-owned property implemented under projects in accordance with international agreements, may be privatized directly at market value on the basis of acts of the President of the Republic of Uzbekistan adopted on the proposal of the Authorized government body.

In relation to municipal property, the territorial administrations of the authorized body shall form:

privatization programs for state institutions and state shares in the charter funds (authorized capital) of business societies, to be approved by the Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of people's deputies of regions and Tashkent city, respectively, in coordination with authorized state bodies as well as the Chairman of the Council of Ministers of the Republic of Karakalpakstan and the hokims of regions and Tashkent city;

real estate privatization programs approved by the Chairman of the Council of Ministers of the Republic of Karakalpakstan, the khokims of the regions and the city of Tashkent in coordination with the Jokargy Kenes of the Republic of Karakalpakstan, the Kengashes of People's Deputies of the regions and the city of Tashkent.

The privatization of state shares in the authorized capital of commercial banks shall be carried out considering the requirements of legislation on banks and banking activities.

The program for the privatization of state-owned property shall provide for the main goals and objectives of the privatization of state property, as well as a list of state-owned property subject to privatization.

One or more objects of state-owned property may be included in the program of privatization of state property.

On the basis of requests from the authorized body or its territorial administrations, as part of the development of a program for the privatization of state property, relevant organizations shall provide:

Within ten days, information from cadastral authorities on prohibitions and restrictions that may affect the disposal of privatized state property, as well as documents on state registration of rights to an object of state immovable property;

within a ten-day period, a conclusion of the Committee for Competition Promotion and Consumer Protection of the Republic of Uzbekistan or its territorial department regarding the state of development of competition in the sphere of activity of business societies and state institutions, the state share in the charter fund (authorized capital) of which is planned to be privatized;

Within a week, the conclusion of the Agency for Cultural Heritage of the Republic of Uzbekistan or its territorial administration that the object is not included in the List of objects of tangible cultural heritage;

Within a week, the conclusion of the Ministry of Construction and Housing and Communal Services of the Republic of Uzbekistan or its territorial administration on the further prospects for the use of state real estate objects and on property rights when auctioning land plots occupied by these objects and in their use in accordance with the master plans of settlements, detailed planning projects of parts of settlements or programs comprehensive development of territories.

On the basis of requests from the Authorized government body or its territorial administrations, as part of the development of a program for the privatization of state property, the relevant organizations also submit other documents related to the privatization of state-owned property in accordance with the procedure established by law.

The Authorized government body or its territorial administrations, based on the program of privatization of state property, shall develop, approve and amend the Roadmap of Privatization of State-Owned Property.

The Roadmap of Privatization of State-Owned Property shall include the conditions, stages of privatization of state property, assessment processes of privatized state property, the timing of privatization of state property, information that is provided about the state real estate object, and other information.

The implementation of the measures provided for in the Roadmap for the privatization of state-owned property shall be mandatory for responsible performers. At the same time, the Authorized government body or its territorial administration shall send the Roadmap of Privatization of State-Owned Property to the responsible executors within three working days from the date of its approval.

The Roadmap of Privatization of State-Owned Property, the privatization of which is carried out by the decision of the Jokargy Kenes of the Republic of Karakalpakstan, the Kengashes of People's Deputies of the regions and the city of Tashkent, or the Chairman of the Council of Ministers of the Republic of Karakalpakstan, the khokims of the regions and the city of Tashkent, respectively, shall be approved by the territorial departments of the Authorized government body.

The preparation of state-owned property for privatization shall be organized by the Authorized government body or its territorial administrations.

The preparation for the privatization of state-owned property shall include determining the composition of state property, conducting an inventory, assessment (examination of the reliability of the assessment report), including measures aimed at increasing its investment attractiveness.

In order to prepare a business society with a state share in its charter fund (authorized capital) or a state institution for privatization, funds of an extra-budgetary state trust fund (hereinafter referred to as the Fund) formed without creating a legal entity under the authorized state body may be directed towards increasing attractiveness and eliminating problematic situations.

The head of a legal entity (the balance holder of a state real estate object) shall submits the following documents to the preparing state-owned property for privatization:

In accordance with the form established by the Authorized government body, the acts of inventory of fixed assets approved by the head of the legal entity (the balance holder of a state real estate object);

Documents certifying the right to real estate and land plots;

Information on production (service) structural divisions and communication networks approved by the head of the legal entity (the balance sheet holder of the state real estate object);

Audit reports based on the technological and environmental characteristics of the enterprise's production process, as well as an organizational and legal comprehensive analytical report of the enterprise;

financial statements of a business society with a state share in its charter fund (authorized capital) being privatized, and an auditor's conclusion on the results of the past reporting year;

Other documents in accordance with the chosen method of privatization of state property.

The head of a legal entity (the balance holder of a state-owned real estate object) is responsible for the correctness, reliability and validity of the submitted documents.

In case of privatization of state-owned real estate objects as a single property complex, together with the land plots on which they are located, the conclusion of the Authorized government body in the field of urban planning or its territorial administrations shall be submitted.

The Authorized government body shall carry out other measures aimed at increasing the investment attractiveness of the enterprise, based on an analysis of the competitiveness of large enterprises with state participation in the domestic and foreign markets, management efficiency, and rational use of assets.

The Authorized government body may create a group of experts on the privatization of state property, as well as engage professional consultants on a contractual basis.

From the date of adoption of the program of privatization of state property, alienation, write-off, pledge or other disposal of state-owned property subject to privatization shall be prohibited, except in cases provided for by the Roadmap of Privatization of State-Owned Property.

The initial price of the privatized state-owned property shall be determined by the Authorized government body or its territorial administrations. The privatization of state-owned property is carried out on the basis of an assessment report by an independent appraisal organization, including appraisal organizations with an international reputation.

The valuation report shall be used as a reference material within the methods of privatizing state-owned property established by this Law. The Authorized government body or its territorial administrations shall:

involve appraisal organizations in accordance with the agreement;

determine the initial price of state-owned property subject to privatization at public auctions, taking into account the current market conditions and all factors influencing the value of such state property, including the residual (book) value or the amount of net assets, which differ from the estimated value, have the right to determine the proportional value.

In cases provided for by Law, the Authorized government body or its territorial administrations shall verify the reliability of the valuation report. In this case, the reliability of the valuation report shall not be verified during the valuation of state-owned property by subsidiaries of internationally recognized auditing companies operating in the territory of the Republic of Uzbekistan, as well as during the placement of state property at auctions and on the stock exchange.

The privatization of state-owned property, with the exception of cases provided for by this Law and other laws, shall be carried out using the following methods:

auction;

competitive bidding;

a public invitation to negotiations;

competitive dialogue;

stock trading;

contributing a state institution as a property complex to the charter fund (authorized capital) of a business society as a state share;

the introduction of state shares and state real estate objects as a state share in the authorized capital (authorized capital) a business company;