Prozorro Sale

On June 3, at a meeting of the Cabinet of Ministers of Ukraine, a resolution “On Approving the Procedure for the Renting Out of State and Communal Property” was adopted, which was developed to implement the Law “On the Renting Out of State and Communal Property”, which entered into force on February 1, 2020.

The resolution is aimed at regulating the procedures taking place in the Prozorro Sale system. Among them, in particular, the following procedures:

- bidding in the electronic system;
- the order of inclusion of property in the lists of the first and second types;
- conclusion and extension of property renting out agreements;
- transfer of property for rent without bidding.

What are the new rental rules for property approved by the Order

We list the main innovations specified in the Order:

- information on all renting out of state and communal property must be public and published in the Prozorro Sale system;
- all new leases are concluded exclusively in Prozorro.Sale, and all commercial leases are concluded using online bidding;
- two types of property lists have been created: commercial-attractive property (it is leased using auctions), and property that can be leased without bidding. This will help fight fraudulent schemes when real estate in the best locations was surrendered for a penny;
- the starting rental price will be calculated from the book value, and not from the valuation of the property;
- the duration of the process of transferring property for rent was reduced to 50-95 days.

It is expected that the new Order will make the procedure for renting out of state and communal property more transparent and fair for potential bidders.

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