Ukraine’s Prozorro.Sale online auction explains why confiscated Russian assets are still not sold

Ilya Mykhailov, Chairman of the Supervisory Board of Prozorro.Sale, told Espreso when asked when the auctions for the sale of Russian assets, which Denys Shmyhal announced back in February, would finally start.

"We have to realise that this whole sanctions track is unique by its nature. There are no similar practices in the world that can be adopted and applied in Ukraine. Therefore, taking into account the increased risks and the need to follow good practices, the letter of the law, so that it does not go in the opposite direction, has its effect on the speed," said Ilya Mikhailov. He also clarified that the confiscated assets are managed by the State Property Fund and it is the Fund that will prepare these objects for sale.

"Since the Prime Minister has declared readiness to sell these assets, I am sure that it will happen in the near future. It may be a matter of months, but definitely not years, because society also demands action and creates positive pressure on the decision-making system," says Ilya Mikhailov.

He also suggests that the auctions for the sale of confiscated assets are unlikely to differ from privatisation auctions. The only differences may relate to the terms of exposure, the procedure for disclosing information about the asset being sold. There may also be differences in the package of documents required to register ownership of the asset. 

• The first oligarch against whom the Ministry of Justice of Ukraine filed a lawsuit with the High Anti-Corruption Court regarding the confiscation of assets was Russian Vladimir Yevtushenkov. On September 1, 2022, the High Anti-Corruption Court upheld the claim of the Ministry of Justice to recover the assets of a Russian citizen located in Ukraine.

• In December 2022, the Cabinet of Ministers transferred 17 real estate objects and shares of corporate rights of 5 enterprises owned by Russian businessman Vladimir Yevtushenkov to the State Property Fund of Ukraine.