Sanctioned Assets for Sale: How the Price Reduction Mechanism Works

How Are Sanctioned Assets Sold?

The government’s main goal is to attract an effective private owner for such properties so that the assets contribute to the economy and generate tax revenue.

The logic behind the process is transparent: in the first stage, the asset is listed at its full starting price. A gradual reduction in price in subsequent stages is possible only if the market shows no demand. The updated government procedure (CMU Resolutions No. 75 and No. 962) established a clear mechanism: an automatic 4-level bidding algorithm in the “Prozorro.Sales” system without any manual intervention.

4 steps: How does the system schedule auctions?

1. First auction (100% of the price) — a classic open auction (English auction), where participants compete for the asset by raising bids from the starting price.

2. Repeat auction (-50% of the starting price)—if the first auction did not take place due to a lack of participants, the system automatically schedules the next one at a 50% discount from the initial price. The format remains the same—bids are placed in ascending order.

3. Hybrid Dutch auction — scheduled if no buyer is found in the second stage. Bidding starts at the price of the previous auction, but the system automatically begins to lower the price in increments (~1% per step, up to a maximum of 50 steps) until a participant stops the decline. After that, other participants can submit higher sealed bids, and the participant who stopped the decline has the right to make the final bid.

4. Repeated Dutch auction (applicable to lots starting August 18, 2026) — if an asset is highly complex and has not found a buyer after three attempts, the system initiates a final stage—up to 99 steps of price reduction.

Why is a flexible approach needed for such assets?

Sanctioned assets are often large enterprises with significant potential but that simultaneously require substantial investment, modernization, and the settlement of accumulated financial obligations.

By purchasing a company, an investor assumes responsibility for its development, including settling accounts with creditors and investing in the modernization of its facilities. To ensure the lot is complete and ready for a relaunch, the government forms comprehensive pools: for example, by combining real estate with the land parcel beneath it or adding claims.

A step-by-step price reduction is a market-based approach:

to find an economically viable entry point for the business;

attract an investor as quickly as possible rather than accumulating debt during downtime;

resume production, preserve jobs, and restore tax payments to the budget.

As soon as several buyers begin competing for a lot, open bidding drives the final bid up to market level.

Upcoming auctions of sanctioned assets in October:

Apartment with an area of 193.2 sq. m

• Starting price: UAH 14,149,700

• Auction date: October 8, 2026

• Link: https://prozorro.sale/auction/SAE001-UA-20260908-72392/

Demurinsky Mining and Processing Plant LLC

• Starting price: UAH 1,824,585,765

• Auction date: October 20, 2026

• Link: https://prozorro.sale/auction/SAE001-UA-20260724-62391/

MotorDetal-Konotop LLC

• Starting price: UAH 415,495,880

• Auction date: October 20, 2026

• Link: https://prozorro.sale/auction/SAE001-UA-20260724-38993/

Hlukhiv Quartzite Quarry LLC

• Starting price: UAH 49,320,952

• Auction date: October 22, 2026

• Link: https://prozorro.sale/auction/SAE001-UA-20260921-86139/

All proceeds from the sale of sanctioned property are directed directly to the Fund for the Elimination of the Consequences of Armed Aggression.