Arrested apartments, houses, and cars will be sold at half price — in which case the price can drop by half

The government has updated the rules for the sale of seized property managed by ARMA. The new procedure defines how seized assets will be sold in Ukraine and abroad, who can participate in auctions, how the starting price will be formed, what will happen if the auction fails, and also establishes a list of persons prohibited from purchasing such property.

The Cabinet of Ministers, by Resolution No. 846, which the "Judicial and Legal Newspaper" reviewed, approved the new Procedure for the sale of seized assets in accordance with Article 21-6 of the Law of Ukraine "On the National Agency of Ukraine for Detection, Search and Management of Assets Obtained from Corruption and Other Crimes."

Which assets will be sold under the new rules

The new procedure applies to assets that:

• have been transferred to ARMA for sale by a ruling of an investigative judge or court;
• have been transferred to the agency with the notarized consent of the owner;
• are under ARMA's management for the execution of court decisions on confiscation, special confiscation, or recovery of assets to the state revenue;
• are located abroad and transferred to ARMA after recognition of the relevant court decision by competent authorities of another state or with the owner's consent.

At the same time, the document establishes restrictions. The sale of assets subject to claims under the Law "On Sanctions" is not allowed until the court decision comes into legal force. An exception is made only for perishable property. Also, until the relevant court decision comes into legal force, movable property recognized as cultural value cannot be sold.

Sale only through electronic auctions

The document stipulates that seized assets located in Ukraine will be sold exclusively on a competitive basis through electronic auctions in the electronic trading system.

Exceptions are established for:

• securities sold on organized capital markets;
• certain types of goods whose trade is allowed by law only on organized commodity markets.

Regarding assets located outside Ukraine, their sale will be carried out in accordance with the legislation of the country where they are located, as well as international agreements. In such cases, several mechanisms are possible: sale by competent authorities of the foreign state with subsequent transfer of funds to Ukraine, transfer of the asset to Ukraine for sale, or another method provided by international agreements.

How the sale will be organized

After receiving the asset, ARMA has no more than three working days to organize an appraisal of the property (if it is absent or outdated) and send a request to the State Customs Service regarding customs payments.

After receiving the necessary documents, the agency makes a decision on the sale of the asset within ten working days and publishes it on its official website.

The auction announcement must contain a full description of the asset, its characteristics, starting price, amount of guarantee and registration fees, auction date, information about property inspection, photos, payment details, draft purchase agreement (if provided), and other necessary information. The document explicitly prohibits including conditions in announcements that may limit competition or discriminate against potential participants.

Who can participate in auctions

To participate in the auction, a potential buyer must submit an application through the electronic system, upload the necessary documents, and pay the registration and guarantee fees.

Individuals must submit copies of identity documents, while non-resident legal entities must also provide registration documents and information about ultimate beneficial owners.

The procedure explicitly prohibits ARMA from requiring any other documents from participants not provided for by the document.

Who is prohibited from buying seized assets

The document contains a broad list of persons who cannot become buyers of seized property.

In particular, these are:

• citizens and residents of the aggressor state;
• legal entities connected with the aggressor state or Belarus;
• companies from offshore jurisdictions and jurisdictions that do not comply with international anti-money laundering requirements;
• persons subject to sanctions;
• persons included in the register of oligarchs;
• persons who have already won similar auctions but refused to conclude a contract or make payment;
• related persons of the owner of the seized asset, suspect, accused, or defendant in a case concerning unjustified assets.

To verify such circumstances, ARMA will conduct a separate check of the winner after the auction ends.

Starting price, repeated auctions, and price reduction

The first auction is held at the starting price determined by an independent appraisal of the property.

If the asset is not sold, the starting price at the second auction will be 50% of the initial price.

If the second auction also ends without a sale, the third auction will be held by the method of stepwise reduction of the starting price with the possibility of submitting price proposals. The maximum number of reduction steps will be 99.

At the same time, the total sale amount cannot be less than the amount of customs payments if such payments have not been previously made.

Which fees must be paid

The procedure sets the registration fee depending on the starting value of the lot — from one to one hundred non-taxable minimum incomes of citizens.

The guarantee fee is 10% of the asset's appraised value, and for repeated auctions — 20%.

The electronic platform operator's fee is 4% of the lot's sale price including VAT.

How the winner will be determined

The winner is the participant who offered the highest price and made at least one bid during the auction.

If only one participant submits an application, they can buy the asset at the offered price but not lower than the starting price. In case of identical price proposals, preference is given to the participant who submitted their proposal earlier.

After the auction ends, the winner must transfer funds for the purchased asset within five working days. After receipt of funds, ARMA issues an act of sale of the asset, which is the basis for the transfer of ownership rights, and for real estate — after state registration of such rights.

What happens if the winner refuses to buy

If the winner refuses to sign documents or does not pay for the purchased property within the established period, their guarantee fee is not refunded.

In this case, the winner may be the participant with the next highest price proposal.

How proceeds from the sale will be distributed

The document also defines the procedure for using funds from the sale of assets in cases of independent execution of a court decision on special confiscation.

ARMA must transfer amounts determined by the court for compensation to victims or civil plaintiffs within three working days after crediting the funds. If the received funds are insufficient, they are distributed proportionally among the recipients. The remaining funds are directed to the state budget.

Which old rules have lost force

Along with the approval of the new procedure, the government canceled eleven previous Cabinet of Ministers resolutions adopted in 2017–2024, which regulated the competitive selection of sale organizers, conduct of electronic auctions, activities of the interdepartmental commission, and amendments to these procedures. From now on, the issue of selling seized assets will be regulated by a single Procedure approved by Resolution No. 846.

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