Since 1991 and till now, the process of state property privatization is underway in Ukraine. Not infrequent are instances of infringement of the fundamental rights of investors and the State in the privatization process. Such infringements mostly occur when privatization contracts are terminated in a court of law. As a consequence, there arises an urgent question about refunding the money paid by the buyers under such contracts. However, there is no clear answer to this question. Thus, the State Property Fund of Ukraine holds the view that current law does not provide for refunding to the investor of the money paid to buy the privatized property. Among other things, it is noted that according to part 4, article 653 of the Civil Code of Ukraine, the parties are not entitled to demand a reinstatement of what was done by them under an obligation before amendment or termination of the contract, unless otherwise provided by contract or law. However, investors’ rights should be protected under any circumstances, and in case of involuntary deprivation of the property right a fair balance should be maintained between private and public interests. Therefore, the relevance of the issue under study is significant. The purpose of this article is to identify some challenging aspects of legal regulation of social relations in case privatized property sale contracts are terminated in a court of law due to improper performance by the buyer of the assumed investment obligations, and also to draw up the proposals on improving the legal regulation of respective relations. The author analyzes challenging issues of protection of investors’ property rights within the framework of relations arising in case privatized property sale contracts are terminated in a court of law. The author explores this issue from the perspective of international standards of investors’ rights protection. In particular, the article thoroughly analyzes the case law of the European Court of Human Rights on the application of article 1 of the First Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms. As a consequence, it is proposed to amend part 4, article 653 of the Civil Code of Ukraine and to formulate it as follows: “4. In case of termination of the contract, each party shall return to the other party in kind all what it has received in pursuance of this contract, and if such return is impossible, the parties shall compensate each other the costs of respective benefits, unless otherwise provided by contract or law.” Besides, the author believes that it is reasonable to change part 11, article 26 of the draft law of Ukraine “On State Property Privatization” No. 7066 with the aim of harmonizing it with international standards of property rights protection. Thus, currently there is a quite apparent and urgent need to make improvements to legal regulation of relations arising in the area under study with a view to protecting investors’rights, improving the investment climate and avoiding negative decisions against Ukraine adopted by the European Court on Human Rights and, accordingly, the State budget expenditure associated thereto, with due regard for the generally accepted international standards and the requirements of the Ukrainian Constitution. The changes to applicable national law proposed by the author will allow achieving the mentioned objectives.

List of legal documents 
 

Legislation 
1. Videnska konventsia pro pravo mizhnarodnykh dohovoriv [Vienna Convention on the Law of Treaties]: ratyfikovano Ukazom Prezydii Verkhovnoi Rady Ukrainskoi RSR [ratified by Decree of the Presidium of the Supreme Council of the Ukrainian SSR] 
vid 14 kvitnia 1986 r. URL: http://zakon3.rada.gov.ua/laws/show/995_118 (accessed: 
28.12.2017) (in Ukrainian). 
2. Hospodarskyi kodeks Ukrainy [Commercial Code of Ukraine]: Zakon Ukrainy [Law of Ukraine] vid 16 sichnia 2003 r. № 436-IV. URL: http://zakon3.rada.gov.ua/laws/ show/436-15 (accessed: 17.12.2017) (in Ukrainian). 
3. Zahalna deklaratsiia prav liudyny [Universal Declaration of Human Rights]: pryiniata i proholoshena u rezoliutsii 217 A (III) Heneralnoi Asamblei [adopted and proclaimed by Resolution 217 A (III) of the General Assembly] vid 10 hrudnia 1948 r. URL: http:// zakon3.rada.gov.ua/laws/show/995_015 (accessed: 23.12.2017) (in Ukrainian). 
4. Konventsiia pro zakhyst prav liudyny i osnovopolozhnykh svobod [Convention for the Protection of Human Rights and Fundamental Freedoms]: ratyfikovano Zakonom Ukrainy [Ratified by the Law of Ukraine] vid 17 lypnia 1997 r. № 475/97-VR. URL: http://zakon2.rada.gov.ua/laws/show/995_004 (accessed: 28.12.2017) (in Ukrainian). 
5. Konstytutsiia Ukrainy [Constitution of Ukraine]: Zakon Ukrainy [Law of Ukraine] vid 28 chervnia 1996 r. № 254k/96-VR. URL: http://zakon3.rada.gov.ua/laws/ show/254%D0%BA/96-%D0%B2%D1%80.004 (accessed: 11.12.2017) (in Ukrainian). 
6. Konventsiia pro zakhyst prav investora [Convention on the Protection of Investors’ Rights] vid 28 bereznia 1997 r. URL: http://zakon3.rada.gov.ua/laws/show/997_047 (accessed: 28.12.2017) (in Ukrainian). 
7. Konvencija pro porjadok vyrishennja investycijnykh sporiv mizh derzhavoju ta inozemnymy osobamy [Convention on the Settlement of Investment Disputes between States and Nationals of Other States]: ratyfikovano Zakonom Ukrainy [Ratified by the Law of Ukraine] vid 16 bereznja 2000 r. № 1547-III. URL: http://zakon2.rada.gov.ua/ laws/show/995_060 (accessed: 05.01.2018) (in Ukrainian). 
8. Pro vnesennia zmin do deikykh zakoniv Ukrainy z pytan pryvatyzatsii shchodo realizatsii polozhen Derzhavnoi prohramy pryvatyzatsii na 2012–2014 roky [On Amendments to Some Privatization Laws of Ukraine in Connection with Implementation of the State Privatization Program for years 2012–2014]: Zakon Ukrainy [Law of Ukraine] vid 13 sichnia 2012 r. № 4336-VІ. URL: http://zakon2.rada.gov.ua/laws/show/4336-17/print (accessed: 15.12.2017) (in Ukrainian). 
9. Pro vykonannia rishen ta zastosuvannia praktyky Ievropeiskoho sudu z prav liudyny [On Implementation of Decisions and Use of the Case Law of the European Court of Human Rights]: Zakon Ukrainy [Law of Ukraine] vid 23 liutoho 2006 r. № 3477-ІV. URL: http://zakon3.rada.gov.ua/laws/show/3477-15 (accessed: 29.12.2017) (in Ukrainian). 
10. Pro Zahalnoderzhavnu prohramu adaptatsii zakonodavstva Ukrainy do zakonodavstva Ievropeiskoho Soiuzu [On the National Program of Adaptation of Ukrainian Legislation to the European Union Legislation]: Zakon Ukrainy [Law of Ukraine] vid 8 bereznia 2004 r. № 1629-ІV. URL: http://zakon3.rada.gov.ua/laws/show/1629-15 (accessed: 05.01.2018) (in Ukrainian). 
11. Pro zatverdzhennia Poriadku povernennia u derzhavnu vlasnist obiektiv pryvatyzatsii u razi rozirvannia abo vyznannia nediisnymy dohovoriv kupivli-prodazhu takykh obiektiv [On Approval of the Procedure for Reinstatement of State Ownership over Privatized Property in Case of Termination or Invalidation of Such Property Sale Contracts]: postanova Kabinetu Ministriv Ukrainy [Decree of the Cabinet of Ministers of Ukraine] vid 18 sichnia 2001 r. № 32. URL: http://zakon3.rada.gov.ua/laws/show/32- 2001-%D0%BF (accessed: 19.12.2017) (in Ukrainian). 
12. Pro pryvatyzatsiiu derzhavnoho maina [On Privatization of State Property]: Zakon Ukrainy [Law of Ukraine] vid 4 bereznia 1992 r. № 2163-ХІІ. URL: http://zakon2.rada. gov.ua/laws/show/2163-12 (accessed: 21.12.2017) (in Ukrainian). 
13. Pro pryvatyzatsiiu derzhavnoho maina [On Privatization of State Property]: proekt Zakonu Ukrainy [Draft the Law of Ukraine] vid 19 veresnia 2017 r. № 7066. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=62455 (accessed: 05.01.2018) (in Ukrainian). 
14. Protokol do Konventsii pro zakhyst prav liudyny i osnovopolozhnykh svobod [Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms]: ratyfikivano Zakonov Ukrainy [ratified by the Law of Ukraine] vid 17 lypnia 
1997 r. № 475/97-VR. URL: http://zakon2.rada.gov.ua/laws/show/994_535 (accessed: 
25.12.2017) (in Ukrainian). 
15. Seulska Konventsiia pro zasnuvannia bahatostoronnoho ahenstva z harantii investytsii [Seoul Convention Establishing the Multilateral Investment Guarantee Agency] vid 
11 zhovtnia 1985 r. URL: http://zakon5.rada.gov.ua/laws/show/995_268 (accessed: 
28.12.2017) (in Ukrainian). 
16. Tsyvilnyi kodeks Ukrainy [Civil Code of Ukraine]: Zakon Ukrainy [Law of Ukraine] vid 16 sichnia 2003 r. № 435-ІV. URL: http://zakon2.rada.gov.ua/laws/show/435-15 (accessed: 11.12.2017) (in Ukrainian). 
17. Uhoda pro spivrobitnetstvo v haluzi investytsiinoi diialnosti [Cooperation Agreement on Investment Activities] vid 24 hrudnia 1993 r. URL: http://zakon2.rada.gov.ua/laws/ show/997_144 (accessed: 28.12.2017) (in Ukrainian). 

Cases 
18. Postanova Verkhovnoho Sudu Ukrainy vid 14 kvitnia 2016 r. u spravi № 5-23ks(15)16. URL: http://www.scourt.gov.ua/clients/vsu/vsu.nsf/(documents)/5EFC18186C47BE90 C2257FBF0023E00B (accessed: 12.12.2017) (in Ukrainian). 
19. Postanova Verkhovnoho Sudu Ukrainy vid 18 sichnia 2017 r. u spravi № 6-2776tss16. URL: http://reyestr.court.gov.ua/REVIEW/64344975 (accessed: 02.01.2018) (in Ukrainian). 
20. Rishennia Konstytutsiinoho Sudu Ukrainy u spravi za konstytutsiinym podanniam Prezydenta Ukrainy shchodo vidpovidnosti Konstytutsii Ukrainy (konstytutsiinosti) polozhen chastyny chetvertoi statti 3, chastyny druhoi statti 5, chastyn druhoi ta somoi statti 7 i chastyny piatoi statti 29 Zakonu Ukrainy “Pro pryvatyzatsiiu derzhavnoho maina” (v redaktsii Zakonu Ukrainy “Pro vnesennia zmin do Zakonu Ukrainy ‘Pro pryvatyzatsiiu maina derzhavnykh pidpryiemstv’” vid 19 liutoho 1997 roku) (sprava shchodo pryvatyzatsii derzhavnoho maina) [Decision of the Constitutional Court of Ukraine in the Case Following the Constitutional Petition of the President of Ukraine Concerning the Compliance with the Constitution of Ukraine (Constitutionality) of Provisions of Part Four of Article 3, Part Two of Article 5, Parts Two and Seven of Article 7 and Part Five of Article 29 of the Law of Ukraine “On Privatization of State Property” (as Amended by the Law of Ukraine “On Amendments to the Law of Ukraine ‘On Privatization of Property of State-Owned Enterprises’” dated February 19, 1997) (Case of State Property Privatization)] vid 1 lypnia 1998 r. № 9-rp, sprava № 01/1501-97. URL: http://zakon2.rada.gov.ua/laws/show/v009p710-98 (accessed: 13.12.2017) (in Ukrainian). 
21. Rishennia Konstytutsiinoho Sudu Ukrainy u spravi za konstytutsiinym zvernenniam hromadianyna Bahinskoho Artema Olersandrovycha shchodo ofitsiinoho tlumachennia polozhen chastyny pershoi statti 14-1 Kodeksu Ukrainy pro administratyvni pravoporushennia (sprava pro advinistratyvnu vidpovidalnist u sferi zabezpechennia bezpeky dorozhnoho rukhu) [Decision of the Constitutional Court of Ukraine in the Case Following the Constitutional Petition of Citizen Baginskyi Artem Oleksandrovych Concerning Official Interpretation of Provisions of Part One, Article 14-1 of the Ukrainian Code of Administrative Offences (Case on Administrative Liability Relating to Road Traffic Safety)] vid 22 hrudnia 2010 r. № 23-rp/2010 sprava 
№ 01/1501-97. URL: http://zakon3.rada.gov.ua/laws/show/v023p710-10 (accessed: 
12.12.2017) (in Ukrainian). 
22. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “Bulves” AD proty Bolghariji [Judgment of the European Court of Human Rights in the Case of Bulves AD v. Bulgaria] (zajava № 3991/03) vid 22 sichnja 2009 r. URL: http://search.ligazakon.ua/l_doc2.nsf/ link1/SOO00553.html (accessed: 02.01.2018) (in Ukrainian). 
23. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “‘East/West Alliance Limited’ proty Ukrajiny” [Judgment of the European Court of Human Rights in the Case of East/West Alliance Limited] (zajava № 19336/04) vid 23 serpnja 2014 r. URL: http://zakon2.rada.gov.ua/laws/show/974_994 (accessed: 02.01.2018) (in Ukrainian). 
24. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “Fedorenko proty Ukrajiny” [Judgment of the European Court of Human Rights in the Case of Fedorenko v. Ukraine] (zajava № 25921/02) vid 1 chervnja 2006 r. URL: http://zakon2.rada.gov.ua/ laws/show/974_041 (accessed: 02.01.2018) (in Ukrainian). 
25. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “Dzhejms ta inshi proty Spoluchenogho Korolivstva” (Case of James and others v. the United Kingdom) [Judgment of the European Court of Human Rights in the Case of James and Others v. the United Kingdom] vid 21 ljutogho 1986 r. URL: http://zakon3.rada.gov.ua/laws/ show/980_180 (accessed: 02.01.2018) (in Ukrainian). 
26. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “Kolyshnjogho korolja Ghreciji ta inshykh proty Ghreciji” (The former king of Greece and others v. Greece) [Judgment of the European Court of Human Rights in the Case of the Former King of Greece and Others v. Greece] vid 23 lystopada 2000 r. URL: http://zakon2.rada.gov.ua/laws/ show/980_007 (accessed: 02.01.2018) (in Ukrainian). 
27. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “Treghubenko proty Ukrajiny” [Judgment of the European Court of Human Rights in the Case of Tregubenko v. Ukraine] (zajava № 61333/00) vid 2 lystopada 2004 r. URL: http://zakon2.rada.gov.ua/ laws/show/980_355 (accessed: 02.01.2018) (in Ukrainian). 
28. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “Serkov proty Ukrajiny” (Case of Serkov v. Ukraine) [Judgment of the European Court of Human Rights in the Case of Serkov v. Ukraine] (zajava № 39766/05) vid 7 lypnja 2011 r. URL: http://old.minjust. gov.ua/34549 (accessed: 02.01.2018) (in Ukrainian). 
29. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “Shhokin proty Ukrajiny” [Judgment of the European Court of Human Rights in the Case of Shchekin v. Ukraine] (zajavy № 23759/03 ta № 37943/06) vid 14 zhovtnja 2010 r. URL: http://zakon2.rada. gov.ua/laws/show/974_858 (accessed: 02.01.2018) (in Ukrainian). 
30. Rishennja Jevropejsjkogho sudu z prav ljudyny u spravi “Sporrong i Ljonnrot proty Shveciji” (Case of Sporrong and Lonnroth v. Sweden) [Judgment of the European Court of Human Rights in the Case of Sporrong and Lonnroth v. Sweden] vid 23 veresnja 1982 r. URL: http://zakon3.rada.gov.ua/laws/show/980_098 (02.01.2018) (in Ukrainian). 
 

Bibliography 
 

Edited books 
31. Jarema A ta Rotanj V (red), Problemni pytannja u zastosuvanni Cyviljnogho i Ghospodarsjkogho kodeksiv Ukrajiny [Challenging Issues in the Application of Civil and Commercial Codes of Ukraine] (Referat 2005). 

Articles 
32. Marmazov V, ‘Metod avtonomnogo tlumachennia Evropeiskoy konventsiy pro zahyst prav ludiny’ [‘Method of Autonomous Interpretation of the Convention for the Protection of Human Rights’] (2003) 14 Pravova derzava 636 (in Ukrainian) 

Thesis abstracts 
33. Aldanov J, ‘Privatizatsia derzhavnoho mauna iak spetsialna pidstava nabuttia prava vlasnosti’ [‘State Property Privatization as a Special Ground for Acquisition of Property Right’] (avtoref dys kand juryd nauk, Kyjivsjkyj nacionaljnyj un-t im Tarasa Shevchenka 2006) 20 (in Ukrainian). 
Government publications 
34. Fond derzhavnogo majna Ukrainy, Lyst (№ 10-25-21484, 2017) (in Ukrainian). 

Websites 
35. ‘Fond derzhavnoho maina Ukrainy: Ukrtelekom povertaietsia u derzhavnu vlasnist’ [‘The State Property Fund of Ukraine: State Ownership over Ukrtelecom Reinstated’] (Fond derzhavnogho majna Ukrajiny) accessed 10 December 2017 (in Ukrainian).