{"id":1755,"date":"2026-05-29T03:29:05","date_gmt":"2026-05-29T00:29:05","guid":{"rendered":"https:\/\/svaroglaw.com\/advokat-z-neruhomosti\/vyznannya-prava-vlasnosti\/mala-pryvatyzacziya-prozorro\/"},"modified":"2026-07-21T10:36:01","modified_gmt":"2026-07-21T07:36:01","slug":"mala-pryvatyzacziya-prozorro","status":"publish","type":"page","link":"https:\/\/svaroglaw.com\/en\/advokat-z-neruhomosti\/mala-pryvatyzacziya-prozorro\/","title":{"rendered":"Small-scale privatisation via Prozorro"},"content":{"rendered":"

Small-scale privatisation refers to the sale of state and municipal property with a value not exceeding 250 million UAH: non-residential premises, buildings, integral property complexes, construction projects under development, and individual items of property. The procedure is governed by Law of Ukraine No. 2269-VIII \u2018On the Privatisation of State and Municipal Property\u2019, and its main rule is simple: the sale of small-scale privatisation assets takes place exclusively via electronic auctions on the \u2018Prozorro.Sales\u2019 system. There are no \u2018arrangements\u2019 outside the system \u2014 all property up for sale is published on the electronic trading platform, and anyone who meets the legal requirements can take part.<\/p>\n

The transparency of the procedure does not mean it is straightforward. In practice, participants lose money and time due to common mistakes: failing to inspect the property and purchasing premises with encumbrances or debts; missing the deadlines for submitting documents; miscalculating the security deposit; failing to pay attention to the terms of sale (for example, the obligation to maintain the business profile); and, after winning, were unable to conclude and pay for the contract on time \u2014 thereby forfeiting their deposit. Another area of risk is the restrictions on participants: the law bars from the auction individuals linked to the aggressor state, persons subject to sanctions, and entities with opaque offshore ownership.<\/p>\n

We provide comprehensive support for participation in small-scale privatisation auctions, from due diligence on the asset to the registration of ownership: we verify the legal soundness of the lot and the terms of sale, prepare the documentation, guide the client through the registration and bidding processes, draw up the sale and purchase agreement and, where necessary, challenge procedural violations.<\/p>\n

Call us on: +38 095 554-54-24. We will inspect the asset and support your participation in the auction.<\/strong><\/p>\n

How small-scale privatisation works: the legal framework<\/h2>\n

In addition to the basic Law No. 2269-VIII, the procedure is set out in detail in CMU Resolution No. 432 of 10 May 2018 (Procedure for conducting electronic auctions for the sale of small-scale privatisation assets) and CMU Resolution No. 433 of 10 May 2018 (selection of electronic trading platform operators and the system administrator). Sales are conducted using two auction models: the classic (English) model \u2014 with a step-by-step increase in price \u2014 and the Dutch model \u2014 with a step-by-step reduction in the starting price if there were no bidders at the first auction. The starting price is based on the asset\u2019s book value or appraised value.<\/p>\n

The sellers are state privatisation bodies and local authorities, whilst the buyers are individuals and legal entities registered in Ukraine or abroad, with the exception of those expressly prohibited from participating by law.
\nBefore bidding on a lot, it is advisable to carry out a legal check on the property \u2013 in effect, due diligence<\/a> \u2013 to ensure you do not purchase property with hidden encumbrances.<\/p>\n

\"small-scale<\/a><\/p>\n

Stages of participation in a small-scale privatisation auction<\/h2>\n

The procedure can be broken down into several steps:<\/p>\n

    \n
  1. selecting an asset in the system and reviewing the terms of sale (profile, encumbrances, deadlines);<\/li>\n
  2. registration on an accredited electronic platform of the \u2018Prozorro.Sales\u2019 system;<\/li>\n
  3. payment of the guarantee and registration fees (registration fee \u2014 approximately 1,200 UAH);<\/li>\n
  4. submitting a bid and participating in the auction (English or Dutch style);<\/li>\n
  5. if successful \u2014 signing the auction results protocol;<\/li>\n
  6. concluding a sale and purchase agreement with the privatisation authority and paying the price of the asset;<\/li>\n
  7. completing the transfer of ownership.<\/li>\n<\/ol>\n

    The deposit is credited towards the payment for the lot if you are the successful bidder, and is refunded to unsuccessful bidders. However, if you are the successful bidder but fail to sign or pay for the contract, you forfeit the deposit \u2014 this is one of the most costly mistakes.<\/p>\n

    When you need a solicitor \u2014 and when you can manage on your own<\/h2>\n

    If you are buying a small, straightforward property free of encumbrances, are confident in navigating the system and have carefully read the terms of sale \u2014 it is entirely feasible to complete the registration and participation process yourself, and we honestly acknowledge this. A solicitor is not essential here.<\/p>\n

    It\u2019s a different matter, however, when the property is \u2018ambiguous\u2019: there\u2019s a risk of encumbrances, a disputed history of the property, terms of sale involving additional obligations, or the stakes are high and the cost of a mistake is significant. In such cases, having the property checked and the transaction handled by a professional more than pays for itself.
    \nIt\u2019s the same logic as with a standard property purchase: for more details, see the pages of     a property solicitor <\/a>and drawing up a sale and purchase agreement. If the property in question is a plot of land or a complex including land, we draw on our expertise in land matters.<\/p>\n

    How we handle small-scale privatisation<\/h2>\n