Privatization is a form of property transformation, presenting a process of transfer of the state (municipal) property into private hands (denationalization).
Under privatization generally transfer of the public property, controlled by these or those state agencies, into a private sector is meant. The Law “On the privatization of state and municipal undertakings” means under privatization” the acquisition into private property of enterprises, workshops, plants, sectors and other divisions, apportioned as independent enterprises by the civilians and joint-stock companies (partnerships) from the state and local Soviet of People's Deputies; and also the acquisition of equipment, buildings, structures, licenses, patents and material and immaterial assets of liquidated enterprises and their divisions, stocks (common stocks and shares) of the state and local Soviet of the people's deputies in the joint-stock companies’ (partnerships’) charter capital; stocks (common stocks and shares), owned by the privatized enterprises in the capital of other joint-stock companies (partnerships) and the ones of the associations, group companies, unions and other associations of enterprises”.
Denationalization may have principally various forms, which may be classified according to the number of characteristics: authorization to employment of either only employees or all intending persons, execution of the procedure for redistribution of property in the form of money or special cheques, sales technique, modification of the enterprises’ organizational structures and the stage of involvement of these or those market participants and institutional investors in the privatization, etc. In fact most of these variants are applied as a whole.
The most widely spread and in-demand ways of privatization are for the present time the following ones:
- Privatization of flats and rooms;
- Redemption of land plots under the immovable property;
- Redemption of non-residential premises from state (municipal) property;