A revamped system for the sale of sanctioned assets will soon launch in Ukraine, with the main goal of making the sale of such assets more transparent, competitive, and attractive to investors, taking into account the best global practices.
This is reported by Finway
New Approach to Electronic Auctions and Lot Formation
According to the new procedure, the sale of sanctioned assets will take place through multiple formats of electronic trading. If an asset is not sold during the first auction, its price will gradually decrease through repeated auctions and step-by-step price reductions. This allows the market to independently determine a fair price for the object and stimulates real competition among participants.
A unique feature will be the ability to create complex lots: in one package, it will be possible to combine not only assets but also financial obligations, significantly enhancing the investment attractiveness of such offers.
Increasing Transparency and Access to Information for Investors
One of the key innovations is the expansion of access to information about sanctioned assets. Potential investors will be provided with detailed information about the object even at the preparation stage for the auction. After signing a confidentiality agreement, they will gain access to a special data room, where a complete list of financial data, ownership structures, existing debts, legal restrictions, and technical documentation will be compiled.
“Potential investors will be able to receive extended information about the object even at the preparation stage, prior to the official announcement of the auction.”
The new approach allows auction participants to qualitatively assess the risks and potential of the assets before the auction starts, which will contribute to the formation of a justified price and reduce speculation.
This also creates conditions for the participation of international investors, who, thanks to a more transparent process, will be able to participate in the auctions alongside local players. It is expected that such openness will enhance competition and positively impact the final sale price of the assets.
With the new sales model, Ukraine is bringing the process of selling sanctioned assets closer to the standards of corporate mergers and acquisitions, which is familiar to foreign investors.
Funds obtained from the sale of sanctioned assets will be directed to the recovery fund, becoming an important source of financing for the reconstruction of the country’s infrastructure and economy. Among the upcoming objects for sale is the Ocean Plaza shopping and entertainment center in Kyiv, the preparation for the sale of which has already been announced by the State Property Fund of Ukraine. The schedule for the sale of sanctioned assets has been approved by the government.