Faster and cheaper: the government has simplified the sale of sanctioned property at open auctions
23 January 17:29
The government has simplified the mechanism for selling sanctioned assets of Russian owners that have been seized by the state. According to Prime Minister Yulia Svyrydenko, the relevant decisions should speed up the sale of property and increase budget revenues, reports "Komersant Ukrainian".
The assets will be sold at open auctions, and all proceeds will be used to rebuild the country.
What rules have changed
The Cabinet of Ministers has approved several key changes to the bidding procedure:
- Bulk sale of assets. Loan claims can now be included in the asset and sold together with it as a single package. This should make the lots more attractive to investors.
- Automatic restart of auctions. If the first auction is unsuccessful, the state will automatically launch a second auction at a lower price. After that, the Dutch auction model will be applied, where the price gradually decreases.
The government expects that this approach will shorten the sale time and reduce the risk of assets becoming “stuck.”
What exactly will be sold
Along with the changes, the government approved a list of sanctioned assets and a tentative schedule for their sale. They plan to put the corporate rights of 26 properties up for auction, including:
- Investment Union Lybid LLC — Ocean Plaza shopping center;
- Mykolaiv Alumina Plant LLC;
- Kalush Pipe Plant LLC;
- AMSTEL-SKI LLC — hotel in Bukovel;
- Demurinsky Mining and Processing Plant LLC;
- Motordetal-Konotop LLC;
- JSC Zaporizhzhya Aluminium Production Plant.
The list is not exhaustive: assets will be put up for auction gradually, depending on their readiness for sale.
When will the auctions start?
The first auctions are scheduled to begin in March. The specific dates will depend on the completion of preparatory procedures for each asset.
Where will the money go
According to Yulia Svyrydenko, all proceeds from the sale of sanctioned assets will go to the Fund for the Elimination of the Consequences of Armed Aggression. They will be used for:
- restoring infrastructure;
- supporting the economy;
- assisting affected citizens.
During 2025, UAH 4.51 billion has already been received by the Fund for the Elimination of the Consequences of Armed Aggression from the sale of sanctioned assets. The government expects that simplifying procedures will increase these revenues in 2026.
