Online auctions helped to earn over UAH 23 billion for budgets of different levels during full-scale war

Over the two years of full-scale war, online auctions in the state electronic trading system Prozorro.Sale have replenished the budgets of various levels by more than UAH 23.5 billion.

The Deposit Guarantee Fund attracted the most funds as a result of auctions held during martial law – almost UAH 6.5 billion. Small-scale privatisation contributed almost UAH 5.6 billion to the state and local budgets. Another UAH 3.7 billion was received by the organisers of bankruptcy asset sales to pay off creditors.

“Since the beginning of the full-scale invasion, the state electronic trading system Prozorro.Sale has helped the state earn over UAH 23 billion. That is, a quarter of the total revenues of UAH 83 billion raised to the budgets of various levels was generated by online auctions after 24 February 2022. This is an example of how, by improving the efficiency of its asset management, the state also invests in strengthening the economy. More than 40,000 bidders, including small, medium and large businesses, competed for assets of the state, communities and private owners after 24 February 2022. Together with government policy and programmes of the Ministry of Economy for business, this allows us to stimulate the development of many markets and generate revenues for the country’s recovery in the face of war,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

As of 24 February 2022, almost 5,000 organisers have announced online auctions in the system, putting up their assets for sale or lease across the country.

Over the two years of martial law, more than 36,000 auctions have taken place in the system. More than half of them were organised by local governments, which sold municipal property worth more than UAH 3 billion. These funds for their budgets came from small-scale privatisation, property lease and land sales. Among the communities, Kryvyi Rih, Chernivtsi and Lviv are the leaders in terms of the number of successful auctions.

“On average, more than two bidders compete at auctions during martial law. At the same time, there are assets that are in higher demand. In particular, it is the lease of wagons of the Transport Logistics Centre of Ukrzaliznytsia JSC, the positive dynamics of which, although slowed down, remains optimistic: up to five bidders compete for them on average. About three bidders compete for state-owned small-scale privatisation objects, land plots and special permits for subsoil extraction at online auctions,” said Sergii But, CEO of Prozorro.Sale.

The most expensive asset sold during the period of martial law was a special permit for subsoil use – Mayorivska Field – for which the winner paid more than UAH 1.1 billion. The top 3 assets with the highest value also include the property of the bankrupt Illichivsk Oil and Fat Plant for almost UAH 700 million and the rights to claim under loan agreements secured by a solar power plant, its equipment and uncertificated shares, which were sold by the Deposit Guarantee Fund for more than UAH 680 million.