Law No. 458-IV On the exclusion of property from state control and the privatization of state property.

This Law establishes the legal, economic, and organizational framework for the removal of property from state ownership and the privatization of state property. Its stated objectives are to promote entrepreneurship, attract domestic and foreign investment, and create conditions for the development of an efficient, socially oriented market economy. The Law defines key concepts such as “denationalization” (the transformation of state enterprises into joint-stock or other organizational–legal forms) and “privatization” (the paid transfer of state property into private ownership), and confirms that the legislation is based on the Constitution and other national legal acts, with international treaties prevailing where applicable.
The Law sets out the scope, principles, objects, and subjects of denationalization and privatization. Core principles include equality of citizens’ rights, competitive procedures, transparency, social protection of employees, and public and state oversight. It identifies which state assets may be privatized—such as enterprises, buildings, and state shareholdings—while explicitly excluding strategic assets like land, natural resources, defense and security property, key infrastructure, and cultural heritage objects. Both citizens and legal entities of Turkmenistan, as well as foreign individuals and organizations (subject to authorization), may participate as buyers, and privatization can take place through various methods including auctions, investment tenders, stock exchange sales, direct sales, and sale to long-term tenants.
The Law also regulates governance, procedures, and financial aspects of the privatization process. It assigns key responsibilities to the Cabinet of Ministers and the authorized state body, including approval of state programs, preparation of asset lists, valuation, organization of sales, and conclusion of sale contracts. Detailed rules are provided on valuation, payment terms, transfer and registration of ownership rights, use of privatization proceeds, and guarantees for employees and investors. The Law establishes liability for violations and mechanisms for dispute resolution.