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Thanks to Prozorro.Sales, even in war conditions, communities received more than UAH 2 billion from rent and small privatization, Yuliia Svyrydenko
03.11.2023 | 13:46 | Section for Public and Mass Media Relations.

More than UAH 2 billion have been received by local budgets from small privatization, leasing of state property and sale of land in the state electronic system Prozorro. Sales since the beginning of the full-scale war. At the same time, on average, based on the results of more than 14,300 electronic auctions, the price increased by more than 1.8 times. 

“The results of auctions in the state system Prozorro.Sales show that despite the full-scale war, we see the desire of businesses to invest in the Ukrainian economy and develop. Accordingly, to pay taxes and create new jobs and added value. And also, such filling of budgets at all levels is a significant additional resource for the recovery of the country,” Yuliia Svyrydenko, First Deputy Prime Minister – Minister of Economy of Ukraine, said.

The most active property during the full-scale war was realized by communities in the Kyiv oblast – over 1.3 thousand successful auctions, the Lviv oblast – 1.3 thousand and the Dnipropetrovsk oblast – almost 1 thousand closed deals.

More than half of the funds earned by communities during martial law – almost UAH 1.3 billion – were received from the sale of land. Agricultural land was most actively leased and non-agricultural community plots were sold in the Odesa oblast – more than 560 successful auctions, the Cherkasy oblast – almost 500, and the Lviv oblast – almost 440. On average, competition at land auctions is 3 participants. At the same time, the online auctions for the lease of land for agriculture in Krasylivska community in the Khmelnytskyi oblast, where 14 and 13 participants competed, were the most competitive. Another 13 participants competed for the right to purchase 0.1 hectares of non-agricultural land in Chernivtsi.

Small-scale privatization has brought more than UAH 773 million to communities since the beginning of the full-scale invasion. The most expensive privatized communal assets are the Zhytomyr Regional Center of Cinematography, which was sold by the city council for UAH 40 million. As well as non-residential premises in Lviv with an area of more than 550 square meters were purchased for UAH 25 million and an area of almost 850 square meters – for almost UAH 18 million. Communities in the Lviv oblast worked the most with the small privatization market – they managed to sell almost 110 municipal facilities, in the Dnipropetrovsk oblast – more than 80, and in the Kyiv oblast – more than 50.

Communities will receive more than 43 million more per year during the war by renting out their property. The largest number of auctions during this period was held by communities in the Kyiv oblast – more than 1,100 successful bids, the Dnipropetrovsk oblast – more than 780, and the Lviv oblast – almost 760. The most expensive property leased during this time through online auctions are the unified asset complex of the fruit and vegetable base of Public Utility Company Svit – the budget of Kyiv receives almost UAH 1.7 million per month from its lease, the electrical equipment in Poltava – more than UAH 1.3 million of income per month, and more than 700 sq. m of a non-residential building in Dnipro – half a million hryvnias of monthly income.

In total, for more than five years of the implementation of the reform of small privatization, Ukraine received more than UAH 15 billion from the sale of state and communal property through online auctions of the Prozorro.Sales system. UAH 4.5 billion of them were received as a result of privatization online auctions after the start of the full-scale invasion.

Prozorro.Sales is a joint-stock company (JSC) that ensures the operation of the electronic trading system of online auctions for the sale and lease of public assets.

100% of JSC is owned by the state represented by the Ministry of Economy.

On October 24, 2023, UN Deputy Secretary-General for Economic and Social Affairs Li Junhua presented Prozorro.Sales CEO Serhii Buta with the award for the best public service – the UN Public Service Awards, which Prozorro.Sales won in June 2022.

The award for the best public service received by Prozorro.Sales is Ukraine’s first such award from the UN. Prozorro.Sales administering the state electronic trading system, in which online auctions for the sale and lease of public assets are held, presented Ukraine in the competition for this award in 2022.

The state electronic trading system Prozorro.Sales was recognized as the best among 350 projects from 58 countries of the world. 

Ministry of Economy of Ukraine 01008, Ukraine, Kiyv city,
Grushevsky str., 12/2