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The Government Has Simplified the Mechanism for Selling Sanctioned Russian Assets

The Government has adopted decisions that expand the capabilities of the State Property Fund regarding the sale of sanctioned property confiscated as state revenue. The updated mechanism allows for faster preparation of assets for sale and their effective realization at open auctions.

Key Changes and Improvements:

  • Packaged Sales: In particular, the Fund has been granted the opportunity to include the rights of claim on loans within the asset and sell them together with the property as a single package. This increases the investment attractiveness of the objects and simplifies their preparation for sale.

  • Updated Auction Procedures: If the first auction does not take place, repeated bidding starts automatically with a reduction in the starting price. After that, a Dutch auction model with a gradual price reduction is used. This approach will help avoid delaying the sale and put assets into economic circulation faster.

In addition, the list of sanctioned assets and the estimated schedule for their sale have been approved. The State Property Fund is preparing the corporate rights of 26 objects for auctions, including:

  • LLC "Investment Union 'Lybid'" (Ocean Plaza shopping mall)

  • LLC "Mykolaiv Alumina Plant"

  • LLC "Kalush Pipe Plant"

  • LLC "AMSTEL-SKI" (hotel in Bukovel)

  • LLC "Demurinsky Mining and Processing Plant"

  • LLC "Motordetal-Konotop"

  • JSC "Zaporizhzhia Aluminum Production Plant" and other assets.

We plan to hold the first auctions as early as March. Assets will be put up in stages — depending on the readiness of the property for sale.

Note: As a reminder, all funds received from the sale of sanctioned property are directed to the Fund for the Elimination of the Consequences of Armed Aggression and will work toward restoring infrastructure, the economy, and supporting citizens.