Article 20. Privatization of state-owned property at auction

State-owned property (with the exception of state shares) shall be put up for auction, which does not require the fulfillment of certain conditions in relation to state property, with the exception of state real estate objects sold at auction with the conditions of construction according to the project based on urban planning norms.

The notice of the auction shall be published in accordance with article 35 of this Law.

Including a requirement that does not apply to the notice of the auction and/or a requirement that restricts competition among participants in the text of the auction notice shall be prohibited.

The auction shall be conducted by the operator on the basis of an agreement concluded with an Authorized government body or its territorial administrations.

The operator shall not have the right to apply an infringing approach to participants in the auction process, in particular, to disclose confidential information received from participants.

The auction for the privatization of state-owned property shall be held in the form of an increase in the starting price in the form of an electronic online auction.

The winner shall be the bidder who offered the highest purchase price for the state-owned property put up for auction. In this case, the reserve winner shall the bidder who has offered a price one step lower than the price offered by the winner for state property.

In order to ensure that the applicant fulfills his/her obligations to participate in the auction, depending on the following starting prices of state property, the participant shall be obliged to make a deposit as a guarantee of participation in the auction in the amount of:

up to one hundred times the size of the base calculated value (hereinafter referred to as the BCV) — fifteen percent of the initial price;

over a hundred times the size of the BCV, but not more than a thousand times the size of the BCV — ten percent of the initial price;

over a thousand times the size of the BCV, but not more than ten thousand times the size of the BCV — five percent of the initial price;

over ten thousand times the size of the BRB — in an amount equal to three percent of the initial price.

From the date of publication of the notice until the end of the auction, the bidder may submit his/her price offer, which is not linked to the auction step for the acquisition of state-owned property and is not disclosed to other participants before the auction begins. In this case, the amount of the deposit made by the bidder shall be determined in relation to the price he offers.