Article 26. General Procedure for Privatization of a State Institution

Privatization of a state institution shall be carried out using one of the following methods:

sale of state shares through transformation into an economic company;

sale as a property complex;

introduction of the property complex into the authorized capital (authorized capital) of a business company as a share;

leasing a state institution with the condition of subsequent privatization.

A state institution shall be transformed into a business society in accordance with the legislation on the management of state property.

The state share in the authorized fund (authorized capital) of a commercial company shall be realized in one of the ways established by this Law.

A state institution shall be sold as a property complex at competitive bidding or by means of public invitation to negotiations.

A notice on the privatization of a state institution shall be published in accordance with Article 35 of this Law.

When a state institution is privatized, its re-registration with a change in organizational-legal form shall be carried out in accordance with the purchase and sale contract of the state property being privatized.

As a result of the privatization of state property, the legal succession of the state institution regarding labor relations shall pass to the buyer in the procedure prescribed by legislation.

In the event that the privatization of a state institution is not carried out in the prescribed procedure, the authorized state body may initiate its liquidation in the procedure prescribed by legislation.

Leasing a state institution to a business society with the condition of subsequent privatization shall be carried out by the authorized state body. In this regard, in order to control the future activity of the state institution during the process of privatization of state property, a special legal regime of "regulatory sandbox" may be introduced for testing in a limited environment (coverage area, lease term, sphere of activity, number of employees, volume of production (services), and others).

The procedure for introducing a special legal regime — a "regulatory sandbox" — is approved by the authorized state body.