Prozorro.Sale, the state online auction system administrator, has completed the process of corporatization. As of now, 100% of the shares in the newly created joint-stock company belong to the state, represented by the Ministry of Economy of Ukraine. According to Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, this is part of the Government’s corporate governance reform.

“The corporate governance reform is in line with the OECD recommendations on the management of state-owned companies. It aims to create modern mechanisms for the professional management of state-owned companies in the interests of Ukrainian citizens, as well as to help ensure macroeconomic stability and attract investment”, said Yuliia Svyrydenko.

According to Oleksii Sobolev, Deputy Minister of Economy of Ukraine, corporatization is being carried out to better manage state property and to increase transparency within companies.

“The Government’s policy is to gradually abandon the state enterprise form of organization, either through transformation into joint-stock companies or state institutions, or through privatization. Effective corporate governance of state-owned companies is one of Ukraine’s obligations under the Association Agreement with the EU. The corporatization of Prozorro.Sale will improve the management of the company that administers the state electronic trading system and will help attract investment in the development of the digital tool”, said Oleksii Sobolev.

The governing bodies of JSC Prozorro.Sale will now be the Supervisory Board and the Board of Directors. The Supervisory Board of the joint-stock company is headed by Iliya Mykhaylov as a representative of the state. The Board also includes a representative of the state, Nataliia Boyko, and two independent members, Nadiia Vasylieva and Dmytro Krepak.

"Wanted to emphasize the main thing: corporatization is a change of organizational form from an outdated to a modern one without changing the owner, in accordance with the best corporate management practices of the Organization for Economic Cooperation and Development (OECD). Thanks to the corporatization, JSC will get greater operational flexibility and therefore, the opportunity to more effectively perform the tasks set before it by its owner — the state", commented the Chairman of the Supervisory Board of Prozorro.Sale, Iliya Mykhaylov.

The newly established joint-stock company Prozorro.Sale is the legal successor to all rights and obligations of the state-owned enterprise Prozorro.Sale.

"Prozorro.Sale started implementing the best corporate governance practices long before the corporatization began. Thus, the state-owned enterprise "Prozorro.Sale" was one of the few state-owned enterprises in which the Supervisory Board worked from the beginning of its creation. It is the Supervisory Board that will play the main role in the process of managing the JSC Prozorro.Sale, which remains the administrator of the state electronic trading system. The transformation and the new legal status allow work better on business processes and general improvement of the system in which online auctions for the sale of public assets are held", added Sergii But, CEO of Prozorro.Sale.

For those who have been working in the Prozorro.Sale system, there will be no changes in their work. Bidders wishing to sell or lease property or assets at online auctions and those wishing to participate in them can register as usual at one of the accredited sites of the Prozorro.Sale system.

The process of transformation from a state-owned enterprise to a joint-stock company Prozorro.Sale began on the eve of a full-scale invasion in February 2022. The decision on transformation was approved by the Ministry of Economy.

For information: 

JSC "Prozorro.Sale" and SE "Prozorro" are two distinct state-owned companies that operate under the common principle of "everyone sees everything," but they manage and develop different electronic systems. JSC "Prozorro.Sale" conducts online auctions for the sale or lease of public assets, while SE "Prozorro" oversees tenders for the procurement of goods, services, and works by state institutions. Thanks to Prozorro.Sale, the total income received by the state and local authorities reaches UAH 72 billion.