The Government of Ukraine has updated the mechanism for the small-scale privatization of state and municipal property that is currently under lease and has been upgraded using tenants' investments. Moving forward, the sale of such objects will be conducted exclusively through open electronic auctions. This was reported by the press service of the Ministry of Economy, via Dengi.ua .
The Cabinet of Ministers approved a decree that alters the rules governing electronic bidding within the framework of small-scale privatization. It specifically concerns properties where tenants have invested funds by making unremovable improvements to the asset.
The new model is designed to replace the practice of direct buyouts, which previously triggered frequent disputes and claims due to the non-transparent valuation of assets and tenant investments. Now, privatization will occur on a competitive basis through a centralized electronic auction system.
The reform implements the provisions of Law No. 4360-IX, establishing a dedicated procedure for selling leased property with modifications via electronic auctions.
Among the key adjustments is the introduction of a mechanism to compensate tenants for the verified cost of improvements, alongside the possibility of offsetting these expenditures against the final payment for the object. However, compensation will only be granted following cost verification and a formal construction assessment.
Additionally, existing tenants will retain a preemptive right to participate in purchasing the property. All auctions and bidding analytics will be completely accessible via the Prozorro.Sale system, ensuring transparency and equal access for businesses and citizens alike.
The Ministry of Economy expects that the new rules will increase budget revenues, stimulate market competition, and facilitate the sale of state assets at fair market value.
Authorities also anticipate that the updated mechanism will establish clearer guidelines for tenants who have invested in capital repairs of state and municipal property, ensuring inefficient assets return to economic turnover more rapidly.
All transactions within the small-scale privatization framework will be funneled through the electronic auction system, forming part of a broader overhaul of state asset management aimed at boosting the country's investment attractiveness.