The law enforcement agency is investigating criminal proceedings concerning the possible abuse of officials of the State Property Fund during the privatization of the Bolshevik.

The auction for the privatization of the First Kyiv Machine-Building Plant JSC took place on October 27, 2021. Firstly, at least 15 bidders intended to fight for it, but only three reached the final bidding. The winner was General Commerce LLC, a company registered in Kyiv in 2018 with a registered capital of UAH 4,000.

In early December, money from the privatization of the facility went to the state budget. On December 29, the Antimonopoly Committee allowed General Commerce to acquire the Bolshevik plant.

Why did the State Bureau of Investigation take on the Bolshevik?

The examination of the State Bureau of Investigation established that the property valuation report, which was used to determine the value of the plant's shares, did not meet the requirements of the law. The agency believes that this could negatively affect the reliability of such an assessment.

Currently, investigators are establishing all the circumstances of the illegal alienation of the plant from state ownership at a reduced cost. This has caused economic damage to state interests, the statement said.

Therefore, the court seized 100% of the authorized capital of the "First Kyiv Machine-Building Plant" on January 11, 2022 in order to preserve the evidence. This was requested by the prosecution.

A pre-trial investigation is currently underway. Criminal proceedings were instituted under Part 2 of Article 364 of the Criminal Code of Ukraine (abuse of power or official position). The sanction of the article provides for imprisonment for up to 6 years with deprivation of the right to hold certain positions or engage in certain activities for up to 3 years.

The auction for the privatization of the state enterprise Electronmash was declared unsuccessful. Its winner Lorten Group LLC did not sign the contract of sale of the object in due time.

The act of non-signing the agreement states that the Regional Office of the State Property Fund in Kyiv provided Lorten Group with a draft contract of sale of the privatization object on December 7, which had to be signed by December 13, but as of December 14 responses from potential buyers not received.

At the same time, on November 17, the potential owner signed a protocol on the results of the auction for the sale of Electronmash, where he promised to sign an agreement to buy and sell the object within 30 calendar days. This means that the object must be put up for privatization again.

How the auction took place

The auction for the privatization of the property complex of Kyiv's Electronmash took place on November 12 in the Prozorro.Sale system. 22 companies competed for it, and the final value of the asset increased more than 14 times - from 66 million hryvnias to 970 million. The winner was the little-known LLC "Lorten Group". The difference in the final price between the winner and the second place was only one kopeck.

Who bought Electronmash

According to the Unified State Register of Legal Entities and Individual Entrepreneurs, Lorten Group LLC was registered in the capital in May 2018 with a share capital of UAH 100. The owner and manager of the company is Oleg Pichenevsky from Nikopol, Dnipropetrovsk region.

Read also: Bolshevik bought at public auction for 1.4 billion hryvnias

The main activity of the company is the purchase and sale of its own real estate, the company also works in the field of law, real estate management and provides information services

What is known about Electronmash

Electronmash property complex

The state enterprise Electronmash has existed for over 50 years. It was created during the Soviet era - in 1965 on the basis of a factory of electronic computers. The state-owned enterprise specialized in the supply of components and finished computer equipment, as well as electronic products.

The company also produced power supplies for on-board public transport networks: trolleybuses, trams, subway cars and railway passenger cars, as well as household gas meters, cash registers for trade, catering and services, electronic equipment for wind control.

As of June 30, 2021, the plant employed 139 people. According to the State Property Fund, at the beginning of July the current debt of the state enterprise amounted to UAH 924,490, overdue - UAH 11.9 million, of which UAH 5.4 million - wage arrears, salary taxes - UAH 3.3 million, other accounts payable - UAH 3.2 million. The total debt at the enterprise is UAH 25 million.

The total area of the facility is 13.6 hectares. It consists of 37 units of real estate, three plots of land and seven leased objects.

Terms of privatization

According to the privatization conditions, the new owner must repay the debts of the enterprise. He also cannot dismiss employees within 6 months from the date of transfer of ownership, and must comply with the requirements of environmental legislation regarding the use of the recreation center, which is part of the EMC.

The State Property Fund of Ukraine has put the state enterprise Electronmash up for privatization online auction. The main profile of the company is the production of computers and peripherals, including electric motors, generators, transformers, etc. It also occupies 13.7 hectares of land on Kyiv's Ring Road, 4.

The date of the auction is November 12, applications can be submitted until November 11.

The starting price for the plant is 66.7 million hryvnias. The new owner will receive 37 real estate objects (factory buildings, warehouses, boiler rooms, canteen), as well as several plots of land, the largest of which is located in the village. Petropavlivska Borshchahivka, Kyiv-Sviatoshynskyi district, Kyiv region.

State Bank Ukreximbank has started a large-scale sale of claims on loans to problem borrowers who do not cooperate with the bank on voluntary debt settlement.

In the near future, non-performing loans of borrowers-legal entities, the total amount of which reaches tens of billions of hryvnias, will be put up for electronic auctions.

The first exhibited lot is the rights of claim under the loan agreement and receivables of the borrower with collateral in the form of unfinished construction. Construction of a multifunctional premium complex Sky Towers with an area of 223 thousand square meters. m. in the center of Kiev was stopped due to deteriorating financial condition of the investor.

Bidding with a starting price of UAH 7.145 billion will take place on November 3 at the OpenMarket auction (SETAM of the Ministry of Justice of Ukraine). In total, 7 lots worth over UAH 24 billion have been put up for auction at the moment.

The process of selling NPL claims involves several English and Dutch auctions with a gradual reduction in price. At the first auction, the rights of the claim are set at a price equal to the amount of the borrower's debt to the bank. The transition to the next auctions will take place in the presence of demand for a particular lot and provided that the application of this scenario will be the most cost-effective for the bank.

Independent experts and appraisers will be involved on a competitive basis to determine the sale price of the claims at Dutch auctions.

On October 20, an online auction was held for the privatization of the only property complex of the state enterprise Vinnitsa Distillery Plant with the result of over UAH 17 million.

Two participants registered to participate in the auction, who during the transparent and competitive bidding increased the price by almost UAH 10 million from the starting price of UAH 7,715,491 to UAH 17,077,155.00.

Now the winner of the auction must sign a protocol on the results of the auction, enter into a contract of sale and make a calculation, after which the process of privatization of the state enterprise Vinnitsa Distillery Plant will be officially completed.

After that, the new owner will receive: the only property complex is located in the production complex, buildings and structures with a total area of 626.2 m2, located on a land plot - 0.3388 hectares.

In the period from July 1 to October 12, 29,493 agreements were concluded within the land market. In total it is 73,447 hectares.

Thus, 5,129 notaries applied for access to the State Land Cadastre. The total number of applications was 5,759, of which 5,094 were approved, 3 were in the queue for consideration, and 662 were rejected.

According to the law, until 2024, only natural citizens of Ukraine with a limit of 100 hectares can buy agricultural land. The law on the land market prohibits foreigners from buying land. The issue of selling land to Ukrainian citizens and foreigners will be decided only in a national referendum.

Read also: In the system Prozorro.Sales announced the first land auction

In Ukraine, the land market started operating on July 1, 2021. As part of its activities, approximately 28,288 land plots with a total area of 70.57 thousand hectares have already been expropriated. The average cost per 1 hectare is UAH 43,879.

In the period from 11.10 to 13.10.2021 it is planned to sell the assets of seven liquidated banks for a total amount of UAH 833.87 million.

Among it, UAH 786.49 million were put up for sale as receivables on loans issued by banks, and securities worth UAH 34.96 million were put up for sale. In addition, real estate, land and other fixed assets will be traded for UAH 11.62 million, in the amount of UAH 0.80 million - receivables.

The assets of banks are sold:

The mortgaged property on the balance sheet of the liquidated banks is valued and sold under the control of the Deposit Guarantee Fund of individuals. Any company or individual can buy fixed assets and property of banks that have been declared insolvent through the electronic system Prozorro.Sales.

The purchase of such property has significant advantages, including low cost and prompt operation. In the process of liquidation of banking organizations, various assets are sold, for example: rights of claim under credit agreements; movable property (vehicles, office equipment, industrial equipment, consumables, etc.); real estate (residential buildings, land plots, commercial buildings and premises, offices).

The Invest.UA Marketplace platform has been officially accredited in the Prozorro.Sales system, which allows users to provide information about any lots that interest them. In addition, the company's specialists provide advice on issues related to operations on Prozorro.Sales and, if necessary, will help to place an application for the auction.

Ukraine and Jordan have agreed on a form of certificate for the export of meat, offal and other poultry products.

The document became the fifth export certificate the two countries have recently agreed to. Earlier, the competent authorities approved the forms of certificates for the export from Ukraine of chilled frozen beef, chilled sheep meat, cattle and sheep for slaughter.

The relevant certificate establishes the zoning of the territory of Ukraine for the uninterrupted trade in poultry products, which operates even in the event of outbreaks of avian influenza.

Read also: Qatar has opened a market for Ukrainian honey producers

Today, Ukraine is among the TOP-10 world exporters of chicken and has the status of a country free of highly pathogenic avian influenza.

According to the State Statistics Service of Ukraine, in 6 months of 2021, Ukrainian producers exported meat and edible poultry offal weighing about 217 thousand tons to 96 countries. During the same period, more than 442.5 million poultry eggs were exported to 55 countries

Drastic changes in the global economy, caused by significant constraints due to the coronavirus pandemic, are forcing companies around the world to reconsider their business models.

Alternative approach in doing business also applies to Ukrainian producers, who are seeking to explore new markets. Until now, buyers and importers used to consider specific requirements as for the quality, while formulating or seeking a quote. However, the situation has changed over the last year. Buyers now pay much more attention to the reliability of suppliers, product quality and further cooperation opportunities, with the expansion of the range prospects in mind.

Given all this, let us relay our experts point on what are the main advantages of exporting products from Ukraine.

Resource opportunities. Ukraine is the one of main suppliers of food products and agricultural products to the world market. Ukrainian enterprises are extensively shifting from the supply of raw materials to the creation of a finished product. It is the observance of product quality requirements, at a competitive price level, that makes it possible to supply our own products both to the market of developed countries and to markets that continue to develop.
Logistics issues. Favorable dispisition creates competitive advantages for Ukrainian businesses. This provides for the development of sales and production chains creation with companies from around the world. Importers from EU are seriously considering products from Ukraine as those to play major competitors in quality and at the same time remain considerably inexpensive while compared to their EU rivals.

Strategic partnership. The threat of insufficient food supply and safety is being increased year by year.That is why products of Ukrainian origin can help meet demand in different markets around the world, making food and other products more affordable.

The uniqueness of the offer. The changes caused by the global coronavirus pandemic have led to increased demand for higher quality products with unique properties. That is why Ukrainian producers occupy new niches, creating products with unique characteristics, especially in the field of food. At the same time, the development of information technology and the creative industry provide new tools and approaches for communication and the creation of new products that can meet current demand in a particular market.

Openness to cooperation. Obtaining an association agreement with Ukraine from the EU creates preconditions for Ukrainian companies to export their own products to the markets of these countries. Ukrainian producers and suppliers entering the develiped countries markets indicates the improved Ukrainian products quality. At the same time, companies from EU opt to consider Ukrainian companies as their strategic partners for the supply of both finished products and raw materials for their own production.

Reliable partnership. Due to the fact that more and more countries are interested in Ukrainian high-quality products, there is a significant demand for it. That is why the Invest.UA specialists actively collaborate with export-minded customers and suppliers from Ukraine to establish reliable trade relationships between them in a variety of fields: from food products such as honey or meat to wood and metal products. The team of experts not only has a thorough understanding of Ukrainian legislation to minimize the risks of export operations, but also enjoys their profound domestic market expertise and insights, which allow to identify highly reliable suppliers shortlist to satisfy and meet customers' needs.

The State Property Fund has put up for auction the children's health camp «Sonyachniy», which is located in the village of Serhiyivka - near Belgorod-Dniester, Odessa region. The online auction is scheduled for October 18.

Оздоровчий табір «Сонячний». Адреса: Одеська область, м. Білгород-Дністровський,  смт. Сергіївка, пров. Тірас, 3.
Health camp «Sonyachniy». Address: Odessa region, Belgorod-Dniester, town. Sergievka, lane Tiras, 3.

The privatization object includes 11 units of real estate, namely: 2 dormitory buildings, a dining room, a cinema, a medical center, a reception department, a checkpoint, a bridge, a fence, a stadium and a pedestal (construction remains). The total area of the camp: 5318.0 m2.

Property-based activities have not actually been carried out since 2006. The property is not used, is in unsatisfactory and neglected condition.

Read also: Tourist base "Black Sea" is sold through Prozorro

The privatization object is located on the shores of the Shabolat estuary, the distance to Belgorod-Dniester is 19 km, to Odessa - 81 km. The starting price of the privatization object is UAH 6,047,922.

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