22 May 2024 15:27

Ukraine's parliament passes law extending moratorium on bankruptcy of state-owned critical infrastructure

MOSCOW. May 22 (Interfax) - Ukraine's parliament has passed a law extending the moratorium on the bankruptcy of state-owned critical infrastructure facilities during martial law in the country and for two years after it has been lifted, Ukrainian media reported, quoting the Telegram channel of MP Yaroslav Zheleznyak.

Some 100 amendments were received while the bill was being discussed.

The Energy and Housing Committee said in its conclusion that the final version of the bill introduces selective restrictions on the execution of court decisions, enforcement proceedings, the termination of legal proceedings in a case, the lifting of arrests, and the closure of bankruptcy cases for commercial organizations that operate state-owned critical infrastructure. The committee thinks such norms contain high risks for the energy sector, which is of systemic importance to the country's economy, do not take the specific nature of its activities into account and may entail undesirable financial, reputational and legal consequences and adversely affect the country's investment climate. This could, for example, result in the questionable use of public funds, with taxpayers footing the bill for lack of professionalism by the managers of state operators of critical infrastructure or in the use of funds designated for the country's restoration.

The parliament in February 2024 passed a law extending the moratorium on bankruptcy of state-owned coal mines until January 1, 2025. The moratorium on bankruptcy of state mines has been in effect in Ukraine for several years and has been extended repeatedly.