The government is trying to withdraw the sale of Ukrzaliznytsia property from Prozorro.Sales - Movchan

The Cabinet of Ministers is attempting to remove Ukrzaliznytsia from the law that obliges state-owned companies to sell their property through the Prozorro.Sales platform. In this regard, the Government has blocked the adoption of a resolution on the procedure for selling the property of state-owned companies.

People's Deputy Alexei Movchan reported this on Facebook. He noted that he and his colleagues in the Economic Development Committee of the Verkhovna Rada consider this unacceptable.

“The anti-corruption legislative framework of Ukraine clearly defines that all government sales must occur through the Prozorro.Sales system, which minimizes human impact and eliminates the possibility of corruption schemes. The law does not provide for exceptions for any participant, as this may open the door to corruption risks. In addition, this creates unfavorable conditions for the competitive sphere of sales of state-owned scrap.”

Alexey Movchan noted that the exception for Ukrzaliznytsia is due to the intention to remove scrap metal operations from the Prozorro.Sales platform.

“Currently, trade in UZ scrap metal through electronic auctions is open and competitive. Thus, more than 41% of lots are won by scrap companies, including leading exporters of scrap metal. Less than 60% are domestic consumers - metallurgical companies. Open and competitive auctions at Prozorro.Sales eliminate doubts about prices and terms of the transaction, providing everyone with equal opportunities to participate. Discrimination against scrap buyers—residents—will have a negative impact on the principles of transparency,” the people’s deputy said.

At the end of 2023, the Verkhovna Rada of Ukraine adopted and the President signed a law on the sale of state property of joint-stock companies that are state-owned or partially state-owned. On March 28, 2023, this law came into force.