In 2023, online auctions in the state electronic trading system Prozorro.Sale generated over UAH 14 billion for the budgets of various levels. These funds came from almost 20,000 successful auctions held in the system this year. As a result of the auctions, the starting price of assets has almost doubled.
“As of the end of 2023, public assets are being sold through public online auctions in the Prozorro.Sale system in more than 20 markets. This is the result of the legislative decisions made by the Government and the Parliament, as well as the effectiveness of the system, which has been helping to raise funds for the state and local budgets for more than seven years. This year, almost 26,000 participants – small, medium and large businesses, as well as individuals looking for assets for their needs – took part in electronic auctions. They bought and leased state and municipal real estate and land at online auctions, obtained special permits for subsoil use and fishing in a transparent manner, and competed for the assets of bankrupt and liquidated banks. This, in turn, is an important contribution to attracting private investment in state and municipal assets and ensuring economic stability,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
Out of UAH 14 billion, more than UAH 4.8 billion are funds raised by the Deposit Guarantee Fund from the sale of assets of banks undergoing liquidation. Almost UAH 3.3 billion was transferred to the budgets of various levels as a result of online auctions for small-scale privatisation of state and municipal property.
Another UAH 2.7 billion was received by the organisers of auctions for the sale of assets in bankruptcy cases to settle accounts with creditors. In 2023, almost UAH 1.4 billion was received by the organisers of land auctions based on the results of successful electronic auctions.
“In 2023, more than 3,500 organisers sold assets at public online auctions in the Prozorro.Sale system. These are the Deposit Guarantee Fund, the State Property Fund, relevant agencies, communities, state-owned enterprises, insolvency officers, private executors and businesses. This has resulted in an increase in the number of auctions they have announced and the number of assets put up for auction. Overall, this year, three out of four assets were sold or leased through online auctions in the system on the first try. This demonstrates the demand for assets in the system and the willingness of businesses to invest in them at the first auction,” commented Sergii But, CEO of Prozorro.Sale.
In terms of the number of successful auctions, Ukrzaliznytsia was the most active in the system this year, with more than 2,000 completed auctions. Ukrtelecom, the State Fisheries Agency and regional offices of the State Property Fund in Lviv, Zakarpattia and Volyn regions are also among the top 5 organisers.
The most expensive asset sold in the system in 2023 was the property of the bankrupt Illichivsk Oil and Fat Plant PJSC which was sold for almost UAH 700 million. The top 3 assets with the highest final value included two lots from the Deposit Guarantee Fund. For the rights of claim under loan agreements secured by a solar power plant, its equipment and uncertificated shares, the winner paid over UAH 680 million. The rights of claim under loan agreements secured by the Magellan shopping centre in Kyiv, the property complex and receivables owed to the former subsidiary of a russian bank were sold for over UAH 620 million.