As of 1 February, a new mechanism for the sale of sanctioned assets will come into operation.

On 1 February 2026, Resolution of the Cabinet of Ministers of Ukraine No. 75 dated 21 January 2026 enters into force, introducing a new, detailed mechanism for the sale of assets recovered to state ownership on the basis of court decisions imposing sanctions. The Resolution approves the “Procedure for the Sale of Assets Subject to a Court Decision on the Application of a Sanction” and amends a number of other governmental acts, systematizing the process of sale and management of confiscated property.

Key Innovations

The central element of the Resolution is the introduction of a transparent procedure for selling assets exclusively through electronic auctions in the Prozorro.Sale system. The Procedure establishes a clear sequence of auctions to ensure maximum efficiency of sale:

• English auction – bidding with price increases, serving as the first stage of sale.
• Repeated English auction – held if the first auction fails, with a 50% reduction of the starting price.
• Dutch auction – applied if the asset cannot be sold at the previous stages. The bidding is conducted through a step-by-step price reduction until one of the participants stops the decrease by placing a bid.

Financial and Management Aspects

• The Resolution clearly stipulates that all funds received from the sale of sanctioned assets (including guarantee and registration fees) are credited to the state budget and subsequently allocated to the Fund for the Elimination of the Consequences of Armed Aggression.
• The document improves approaches to asset management. In particular, recovered assets are excluded from privatization lists and are sold under the new, special procedure.

An important clarification is the inclusion of “rights of claim” among the assets subject to sale, enabling effective handling of debt obligations of sanctioned persons.

Main Categories of Such Assets

• Corporate rights – shares and participatory interests in the charter capital of companies (LLCs, JSCs, etc.);
• Real estate – land plots, buildings, structures, apartments, and other immovable property;
• Rights of claim – debts under loan agreements, credit agreements, or other financial obligations owed to a sanctioned person;
• Other assets – any other property (movable or immovable) and proprietary rights confiscated by court decision under the sanctions mechanism.

Temporary Nature of Regulation

It is worth noting that the Resolution, which enters into force on 1 February 2026, is temporary in nature and will cease to be effective one year after the termination or cancellation of martial law, reflecting its focus on addressing urgent tasks under current conditions.

Thus, the Resolution centralizes and unifies the process of selling sanctioned assets, aiming to increase transparency, accelerate sales, and ensure targeted funding for the needs of the state.