The article is focused on the analysis of legal provisions regulating bankruptcy proceedings against economic entities of the public sector of economy, and on finding out the conflict of law provisions in Ukraine’s current legislation on bankruptcy and privatization. In particular, the Government has announced about implementation of the privatization program. About 960 State-owned enterprises were transferred to the State Property Fund for privatization. The essence of the issue analyzed by the authors of the article is that the vast majority of these enterprises have large debts to their creditors. This situation engenders a range of conflicts relating to practical application of various statutory regulations which in one way or another pertain to the domain of bankruptcy.

 The purpose of the article is to investigate into legal regulation of bankruptcy of Stateowned property.

The main results involve a recommendation that there is no reason in excessive restrictions and moratoriums on the application of bankruptcy proceedings against enterprises of the public administration sector. As a rule, this practice of regulating economic-law relations under administrative law entails undesirable economic consequences. Such restrictions will evoke a negative economic effect for public sector enterprises as well as for the economy in general, and this will backfire on the international ratings of Ukraine’s investment attractiveness.

Based on this study, it may be concluded that there is a need for improving the mechanisms of practical application of legal provisions regulating bankruptcy proceedings against enterprises with the State-owned share over 50%. Such improvement is possible via activation of the interaction between public administration bodies, bodies of the judiciary and professional civil society actors, in particular, Ukrainian professional self-regulating organizations of trustees in bankruptcy, with a view to unifying the practice of application, resolving conflict of law issues and enhancing the efficiency of bankruptcy proceedings.

Bibliography

Websites

1. ‘Uriad peredav rekordnyi 431 derzhavnyi ob’iekt na pryvatyzatsiiu ta 4 velyki ob’iekty’ [‘The Government Has Tansferred a Record 431 State-Owned Facilities for Privatization and 4 Large Facilities’] (Uriadovyi portal, 03.03.2020) <https://www.kmu.gov.ua/news/ uryad-peredav-rekordni-431-derzhavnij-obyekt-na-privatizaciyu-ta-4-veliki-obyekti> (accessed: 28.04.2020) (in Ukrainian).

2. ‘Doing Business’ (Ministerstvo rozvytku ekonomiky, torhivli ta silskoho hospodarstva Ukrainy) <https://me.gov.ua/Documents/Detail?lang=uk-UA&id=05376d6c-3772-4027ac6f-73e33e2905a8&title=DoingBusiness2019 (accessed: 28.04.2020) (in Ukrainian).