The start of large-scale privatisation

The Cabinet of Ministers of Ukraine on 18.07.2023 gave the green light to the start of large-scale privatisation on Prozorro.Sale by adopting important innovations. These changes provide for clearly defined procedures for conducting e-auctions, including rules to obtain permits and measures to prevent disruptions caused by unscrupulous bidders.

Large-Scale Privatisation: How it Differs from Small-Scale Privatisation

Small-scale privatisation pertains to assets with a value of up to UAH 250 million or equal to this amount. These assets can include small businesses, real estate properties, and other state or municipal properties.

Large-scale privatisation refers to assets whose starting price exceeds UAH 250 million, for example:

- large enterprises and complexes;
- stakes (shares) in business entities in which the state owns more than 50% of the authorised capital.

Also, the procedure for large-scale privatisation differs from small-scale privatisation in that it involves investment advisers who:

- collect all the necessary data on the privatisation object;
- prepare it for transfer to private ownership;
- actively search for potential investors.

Return of Procedure

The adopted draft law empowers the head of the SPFU to independently appoint and dismiss deputies. This is not all: 12 regional branches of the SPFU will be transformed into structural subdivisions. In addition, the Law contains other provisions that should be mentioned:

Also provided for by the Law

But that's not all.

Changes to the work

It is worth noting that the funds received will be transferred o the Fund for the Elimination of the Consequences of Armed Aggression.

What is Happening Now

From 18.07.2023, the updated criteria for e-platforms connected to Prozorro.Sale were introduced, namely: only platforms that comply with the established requirements will participate in the sale of assets and pools worth more than UAH 250,000,000.

In addition, the government has taken measures to prevent irregularities during online auctions for the sale of small-scale privatisation. Now, if the winner of the auction is unable to make the payment, the second-place winner will be declared. In addition, both participants are obliged to pay a 40% guarantee fee to the state budget, which is twice the previous amount.

How to Participate in the Auction and Buy the Desired Lot

To buy a desired object at a Prozorro.Sale auction, you first need to register on the SmartTender.biz platform. There you will be able to find the desired announcement and submit an application to participate in the auction. You may also find our instruction on how to participate in Prozorro.Sale auctions are useful.

If you have any questions or need help with submitting an offer or setting up notifications, please contact our support team by phone: 0 800 75 10 10.

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