State priorities regarding the privatization of confiscated property are undergoing changes. The main goal for the authorities is not to maximize budget revenues from selling assets of sanctioned individuals, but to quickly launch them and integrate them into the country's real economy. This was stated by the Head of the State Property Fund, Dmytro Natalukha, during the United by Mining conference.
Economic Logic of Sanctioned Objects
According to the SPFU head, the state has not invested a single kopeck of budgetary funds into the acquisition or development of these productions. All seized objects previously owned by odious Russian oligarchs and Kremlin-affiliated figures—such as Oleg Deripaska (Rusal) or the Rotenberg family—were obtained by the country for free through confiscation. That is why the financial gain from the sale takes a back seat, giving way to the task of preserving jobs and restoring uninterrupted enterprise operations.
Price Reduction Mechanics and Export Base Examples
As a clear example of the flexibility of the new approach, Natalukha cited the situation around the Hlukhiv Quartzite Plant. After potential buyers failed to appear at the first stage of the auction, the asset's value is automatically revised: for the next stage scheduled for October 20, 2026, the price drops by half. If demand fails to materialize this time as well, the mechanism provides for further price reductions until real business interest emerges.
Investor Benefits and Protection from Regulatory Risks
Acquiring such assets opens up unique opportunities for business, allowing them to obtain ready-made production facilities with access to international markets for relatively modest funds. Confirming this, the fund's head reminded that the quartzites of the mentioned quarry have a high share of silicon demanded globally, and the products of the Konotop Motordetal plant are traditionally export-oriented. Additionally, the agency is actively developing special mechanisms to protect investors from potential regulatory changes after purchasing mining assets.
