Lviv becomes first Ukrainian city to earn 1 bln hryvnias from small-scale privatization

During the five years since small-scale privatization has been in operation, the Lviv City Council has earned UAH 1 billion ($27.1 million) at online auctions for the sale and lease of communal property, the Acting Director of Prozorro.Sales platform Serhiy But said during a briefing at the Ukraine Media Center on Wednesday.

This is one-ninth of all revenues received through auctions in Prozorro.Sales in 2018-2023.

"The city managed to earn UAH 1 billion ($27.1 million) during the period of small-scale privatization. In general, about UAH 9 billion ($244.1 million) of income were received during this period. And one billion of these nine is Lviv's contribution," said But.

From August 2018 to May 2023, the Lviv City Council organized 356 successful online auctions for small-scale privatization. The average competition at auctions was almost three participants, and the price according to the results of e-auctions increased almost twice.

"We had cases when the first auction was unsuccessful, but during the second auction, when the system announces minus 50% of the starting price, there were many takers and the price rose above the level of the starting price. We are very happy when our premises find new owners, which restore them, develop them, repurpose them," said the head of the city department of communal property Inna Svystun.

According to her, in the last two years, in addition to sales, the management has focused on renting premises through the Prozorro.Sales platform. During auctions, the value of premises increases tenfold.

In the case of privatization, the largest price increase – by more than six times – was at the auction for the privatization of the boiler house with an area of 740.6 square meters. m. It was sold for more than UAH 24 million ($650,812), and the competition was as many as 10 participants.

The most expensive were non-residential premises in the city center with an area of more than 400 square meters sold for UAH 116 million ($3.1 million).

Last year, the city budget of Lviv received UAH 55 million ($1.5 million) from the privatization of premises in Prozorro.Sales, and this year – already UAH 63 million ($1.7 million).

Since February 24, 2022, almost 50 auctions have been held, which brought more than 90 million to the budget of Lviv. During this period, the price of assets sold at auctions increased by 60%.