The new life of old state-owned assets

The rubber has met the road – state-owned objects are being sold as a part of small-scale privatization. ProZorro.Sales electronic trading system has placed a list of objects that fall under this classification on its website. Privatization will take place exactly through this system in accordance with the Law of Ukraine "On privatization of state and municipal property". State-owned assets are brought into the system by the State Property Fund, and municipal ones – by local authorities. The starting number is about 700, and it can exceed 1000 in the future.
SmartTender is one of the first electronic platforms to receive the necessary accreditation for holding small-scale privatization auctions. Moreover, the first object was put up for sale exactly here – it was an inactive dental clinic in Zhytomyr, which has already been successfully sold. At the present moment, the number of facilities for sale has exceeded 250, including premises of shops, cinemas, apartment houses, canteens and factories. So do not hesitate – here you will find any asset you are interested in.

Prehistory

It all started in early 2018 when the law on privatization of state enterprises was adopted. According to it, simplification of the classification of privatization objects will lead to greater accessibility of the privatization procedure itself. The division into small-scale and large-scale privatization has become the result of this simplification.

Prospects

The authorities believe that privatization process will contribute to the development of the economy and the promotion of small and medium-sized businesses. Interested entrepreneurs will create an atmosphere of healthy competition, which will positively affect the final selling price. First of all, this is due to the fact that old buildings will be able to function and generate revenue after modernization, whereas now they are completely useless. In addition, transparent and open privatization of loss-making public enterprises that are not of strategic importance is one of the IMF conditions for continuing cooperation.

Literacy campaign

Small-scale privatization concerns assets that do not exceed UAH 250 million. From UAH 250 million to infinity – the territory of large privatization, which will be conducted under the supervision of foreign advisers.
In the case of small-scale privatization, it is mostly about completed and unfinished buildings, shops, recreation centers, and schools. The industrial sector includes factories, workshops and warehouses. Some of them are sold in parts. However, this is not an exhaustive list: there is information about "sales" of baths, garages, cinemas and even movable property such as sewing machines, refrigerators and electric stoves.

Auction Regulations

Everyone can buy state-owned assets except Russian citizens. Information on the number of participants remains hidden until the auction for the state-owned enterprises privatization starts. Participation in the auction involves making a registration and guarantee fees payment and the starting price approval. If a potential buyer turns out to be a monopolist in his or her desire to acquire a small-scale privatization object, he or she gets an offer to do so at the starting price. The only condition for victory is full payment. Refusal entails the loss of the guarantee fee.

Expectations VS Reality

The income expected from the sale of state property is constantly changing as the correlation between expectations and reality is updated. However, many people are optimistic. This is especially true of the most likely buyers of a number of facilities who have long been waiting for the opportunity to obtain them into ownership. New business horizons and the awakening of "asleep" assets are the nearest prospects. So getting involved in the Ukrainian privatization movement can be a very promising step.