Anyone can be an investor – both individuals and legal entities, both residents and non-residents. There is a specific ban for investors related to the aggressor state or subjects to sanctions. There is also a ban on offshore investments without a transparent ownership structure.

More details: see Article 8 of the Law of Ukraine “On privatization of state and municipal property”.

The law provides for a model of four auctions, which automatically follow each other, only if the previous one did not take place, that is, there was not even 1 application for participation. The first auction is held 5-20 working days after the publication of the information notice. If the auction did not take place, the next auction is announced automatically within 1 working day and is held after 10-15 working days (3-6 days during martial law).

1. English auction to increase the price (Auction without conditions or auction with conditions). The starting price is 100% (initial price).
2. English auction to increase the price (Auction with a decrease in the starting price). The starting price is 50% (of the initial price).
3. Dutch auction for price reduction (Auction by the method of step-by-step reduction of the starting price and subsequent submission of price offers). The starting price is 50% (of the initial price).
4. Dutch auction for price reduction (Auction by the method of step-by-step reduction of the starting price and subsequent submission of price offers). The starting price is 50% (of the initial price).

In all types of auctions (English and Dutch), the winner is determined by the bidder who placed the highest bid during the auction.

An English auction is a typical auction for price increase. English auction consists of 3 rounds, where each participant has an opportunity to increase previous bid, and 3 minutes is given for the decision-making to each participant. The peculiarity of this auction is that the participant who set the highest price goes last and sees all competitors’ bids.

A Dutch auction is an auction where a starting price of an asset at first declines (usually this type of an auction is determined for assets which price is difficult to estimate) until one of the bidders is willing to buy an asset at that price. Then the price at which the decline was stopped is considered the starting price, and all participants have an opportunity to compete for the asset in 1 round.

Information about objects is posted on this website (see “Alcohol industry” catalogue), on ProZorro.Sales website, on the websites of authorized marketplaces.

For more information about the object, there are virtual data rooms. These are storage locations of all documents that are available concerning the object – from technical passports to ownership titles and photographs. Their main purpose is to simplify access to information, eliminate corruption during receipt of those documents and enhance the transparency of the privatization process.

If you still have questions after this, each object has a contact person responsible for privatization preparation, as well as a person responsible for physical access to the facility. Information about these people is available at the object’s webpage.

For more information on accessing data rooms, see “How to Buy” webpage.

Operating Locations (OPs, МПД) are places of production activities and storage of alcohol of SOE “UKRSPYRT” is provided. Because each such object (plant) is not a legal entity per se, an OP is, in fact, a group of separate property, including buildings, equipment, movable property, etc., that is capable of providing a full production cycle.

The plant can simultaneously produce one of the following types of alcohol:

• Non-denatured ethyl alcohol (simultaneously, a plant can produce any ethyl alcohol without the content of denaturing additives: rectified (food) alcohol, technical alcohol, raw alcohol) and products that contain it: alcohol spirit and liquor beverages, alcohol vinegar).
• Denatured ethyl alcohol and products based on it: detergents, dissolvents, antiseptics, perfumes and cosmetics products, etc.
• Bioethanol and its raw material (raw materials for bioethanol), biofuels.

By-products of alcohol production are biogas, protein forage products and carbon dioxide.

The starting price is formed at the book value level (for joint stock companies – at the level of the par value of shares). If there is no book value, such value is established on the basis of the value determined in accordance with the Valuation Methodology approved by the Cabinet of Ministers of Ukraine. But with the correct work on the disclosure of information and preparation for privatization, the competition at the auction always forms the market price of the object.

During the period of martial law, in the absence of book value, it is possible to put the object up for sale for 1 hryvnia and give the market the opportunity to determine its real price.

Licenses for the production of alcohol beverages (spirits and liquors) can be obtained by enterprises of any form of ownership.

Obtaining a license for the right to alcohol wholesale costs UAH 500,000 annually, and is issued within 10 days.

Obtaining a license for the production of alcohol takes no more than 30 days from the application date and requires an annual fee of UAH 780.

More details: on “How to get a license” webpage.

Privatization objects are sold without land. According to the legislation, an owner of an object on this land plot has the primary right to register this land plot.