The company “Ukrzaliznytsia” plans to hold its first auction for the sale of metal scrap through the Prozorro.Sales system in May 2025, after nearly two years of pause. This was announced by board member Yevhenii Shramko during a meeting with potential raw material buyers. According to him, at the first stage, the company intends to sell about 70 thousand tons of scrap, while the total available for sale amounts to 159.5 thousand tons.
This is reported by Business • Media
“If everything goes according to plan, you will see the first lots in the Prozorro.Sales system by mid-May. The estimated date is May 15,” he noted.
Changes in the Legal Status of Ukrzaliznytsia Regarding Property Sales
At the beginning of April, the Ukrainian government allowed “Ukrzaliznytsia” to independently make decisions regarding the disposal of property if its book value does not exceed 500 million hryvnias. This enables the company to start selling accumulated scrap and gravel products. The Ministry of Community and Territorial Development reported that “Ukrzaliznytsia” will be able to sell over 218.6 thousand tons of ferrous metals worth about 1.6 billion hryvnias and 3.8 thousand tons of non-ferrous metals and alloys worth about 233.4 million hryvnias. The procedure under which property sales were conducted by board decision was canceled in September 2023. Now, the sale and lease of property must be agreed upon with the Cabinet of Ministers of Ukraine.
In December 2023, “Ukrzaliznytsia” initiated changes to the relevant resolution to regulate the property sale procedure through auctions. The company has not sold scrap on the domestic market of Ukraine through the Prozorro.Sales system for over a year and a half. The last auctions took place in September 2023. As “Ukrzaliznytsia” is the largest state operator in the industry, with an annual scrap sales volume of about 10-13% of domestic consumption, the prolonged absence of sales poses serious risks to Ukrainian metallurgy. In 2023, the company sold only 76.4 thousand tons of metal scrap compared to 113 thousand in 2022, against a plan of 170 thousand tons.