From now on, the sale of material assets of the state reserve, including those with expired storage periods, will be carried out at electronic auctions on the Prozorro.Sale website. This will expand the range of buyers and ultimately save the budget. At the same time, russian companies or companies whose ultimate beneficiaries are russian citizens will not be allowed to participate in such auctions.

Such norms, in particular, are contained in the new version of the Procedure for the Sale of Material Assets of the State Reserve, approved by the Government at a meeting on June 27, 2023.

"The current Procedure for the Sale of Material Assets was adopted during Yanukovych's presidency, and today it obviously does not meet the requirements of the times or the challenges facing the country. We have modernized the document as much as possible. We have removed corruption risks. We have increased the transparency of the processes. We have created conditions to ensure that stocks are replenished and refreshed promptly and on schedule, and that the budget does not lose money," said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.

The key problem with the previous Procedure was the requirement to sell unarmored assets, in particular, those that are about to expire, at market price and at regular auctions. Under such conditions, the assets, which were usually either obsolete or almost expired, were uncompetitive in the market for similar modern goods with a full shelf life. As a result, there were no buyers for the maturities, and the state continued to store them at its own expense and eventually disposed of them.

At the same time, according to the law, it is the proceeds from the sale of disarmed property that are used to replenish the State Reserve stocks, refresh them, etc. In particular, the State Budget for 2023 envisages revenues from the sale of deactivated assets to be used to replenish the reserves in the amount of over UAH 384 million.

The new Procedure, adopted by the Government as part of the Strategy for Reforming the State Material Reserve System until 2025, addresses all the problematic issues. The key innovations include:

• the sale of the State Reserve property will take place at transparent electronic auctions Prozorro.Sale at the balance sheet price by increasing or decreasing the starting price step by step;
• exception - sale of saleable assets to a recipient designated by the Cabinet of Ministers of Ukraine to implement stabilization measures in the domestic market;
• the bidder's guarantee fee is set at 2-3% depending on the lot price.

In addition, the new Procedure prohibits citizens of the russian federation (except for those legally residing in Ukraine), legal entities established and registered in the aggressor state, or Ukrainian legal entities whose ultimate beneficiaries are the russian federation or citizens of the russian federation.