On 28 September 2023, the mechanisms for the sale and lease of assets of state joint-stock companies through online auctions in the electronic trading system Prozorro.Sale, determined by the Cabinet of Ministers of Ukraine, came into force. The Government adopted this decision on 22 September 2023 pursuant to Law of Ukraine No. 2792-IX which entered into force on 28 March 2023 and aims to improve the efficiency of joint-stock companies with a 100% state share.

From now on, in accordance with the current legislation, such joint-stock companies will sell and lease their assets through the state-owned online auction platform Prozorro.Sale. Previously, state-owned JSCs were not obliged to sell their property through competitive electronic auctions, but rather determined the methods of alienation and lease in accordance with their own procedures under the legislation on the activities of joint-stock companies.

"The purpose of transforming strategic state-owned enterprises into joint-stock companies is to ensure a transparent system in their management. This creates the conditions for building the trust of potential investors in the management system of state-owned enterprises and attracting long-term investments in them, which is a priority for us in the coming years. The Ukrainian economy needs this very much, so we must use the best tools to get results," commented Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.

"The Government and the Ministry of Economy, together with the Parliament, continue to consistently improve the efficiency of the public sector. Another logical step was to regulate the sale and lease of property of state joint-stock companies, including such strategically important companies as Naftogaz, Ukrposhta, Ukrzaliznytsia and others. These are companies that are of strategic importance to the economy and the state as a whole, and will continue to be owned by the state. Transparent and uniform rules and digitalisation of processes will help businesses gain access to public assets. This will increase competition in bidding and investment in state property and contribute to economic growth," said Oleksii Sobolev, Deputy Minister of Economy.

Joint-stock companies with a 100% state share, including Ukrzaliznytsia, Ukrposhta, NJSC Nadra of Ukraine, National Power Company Ukrenergo, JSC Automobile Roads of Ukraine, PJSC Ukrhydroenergo, JSC Naftogaz, JSC National Public Broadcasting Company, PJSC Agrarian Fund, PJSC Ukrainian Danube Shipping Company and others, will sell and lease their assets through online auctions in the state electronic trading system.

"Public assets have been sold through Prozorro.Sale since 2017. This includes the sale of small-scale privatisation objects, lease of state property, and sale and lease of land plots. Over seven years, the state budget has received at least UAH 15 billion from the sale of these assets. The mechanisms introduced by the Government and the Parliament will increase the amount of budget revenues, which are critical during the war, as they enable all state-owned JSCs to manage their assets in a transparent and competitive manner through public online auctions," added Serhii But, CEO of ProZorro.Sale.

The assets of state-owned JSCs that will be sold at electronic auctions include land plots, real estate, machinery and equipment, etc. According to the Government's decision, auctions for the sale and lease of such assets will be held at a rising price (English auction) and a falling price (Dutch auction).

Anyone, including foreign citizens, will have an opportunity to participate in the auctions announced by state-owned JSCs. To do this, one needs to register on one of the platforms accredited in the Prozorro.Sale system and apply for participation in the selected auction. Citizens and legal entities of the russian federation are not allowed to compete for the state-owned assets of JSC. All information on the course and results of auctions for the sale of assets of state joint-stock companies will be available to all interested parties in the public analytics module bi.prozorro.sale.