The document discusses the challenges faced by Ukraine's public e-auction system, Prozorro.Sale, during wartime, as well as results and adaptations made. Key points: - Prozorro.Sale faced challenges like decreased activity in some markets, new priorities for the government, and lack of resources due to the war. - Adaptations included launching new markets like charity auctions and relocation platforms to help displaced businesses. Charity auctions raised over $1 million for Ukraine's armed forces. - Moving forward, Prozorro.Sale aims to continue supporting Ukraine's reconstruction through existing and new markets, while upholding principles of transparency and sustainability. Filling state budgets and disposing of seized

1. Ukrainian GovTech Auction
System During Wartime:
Challenges and Results
Oleksandr Akulenko
Chief Product Officer,
Prozorro.Sale
https://fb.com/prozorro.sale
https://fb.com/aleksandr.akulenko
https://www.linkedin.com/in/oleksandrakulenko/

2. A little bit
about me
● Chief Product Officer at Prozorro.Sale
● responsible for the product portfolio and
ecosystem development
● helped bring about UAH 72 billion to
budgets of various levels
● the system has received a number of
international awards
● our team launched or transformed about
20 different markets
● Experience in the commercial sector with
different types of products (b2b, b2c, b2b2c)
● Member of the Reforge (community for
executives from fast-growing tech companies)
● pre-MBA in Public Administration, graduate
of the School of New Thinking and the
Personnel Reserve of Ukraine

4. “Everybody Sees Everything”

5. ~ 2 500 6
years ago...

6. Were there any
chances to get
access to public
assets
6 years ago?
By invitation only

7. Assets
registry
before
Prozorro.Sale

8. Auctions
before
Prozorro.Sale
🥺
🥺

9. Our journey
The e-auction system appeared after the Financial sector reform in
Ukraine and within 6 years spreaded on other markets.
2016
90 banks went
bankrupt
appeared demand to
sell assets equal to
USD 20bn fairly
2017 - 2018
Privatization reform
State and communal
property become
available on
e-auctions
further development
of the system
2019 - 2022
State property leases,
timber, Railway car
rental
Mineral Extraction
Rights, Land lease,
Insolvency
Result
100K+ successful auctions
USD 2,5 bln successful
auctions
English auction, Hybrid
Dutch auction
Effective: 22% recovery rate
(NPL)
Diverse: Hybrid dutch
auction specifically
developed for selling NPLs
in low competition markets.

10. How Prozorro.Sale works: two tier solution
Private
E-commerce
E-auction
Accredited sellers
connected to the
system
State & Local
authorities
Business
and
community
Private
Marketplace
SELLERS
BUYERS
1 level 2 level 1 level
Accredited sellers
connected to the
system
CENTRAL DATABASE
Benefits
● Clear rules
● Reliable Database of Public assets for
sale
● Private Marketplaces provide Ad-hoc
services for clients
● online procedures
● complete transparency
● quality data to take
management decisions

11. Online tools
that help to operate
public assets
CENTRAL DATABASE
AUCTION MODULE
Participant 1 Participant 2 Participant 3
Seller 1
Pains before:
● long selling process
● papers/offline
● corruption
● lack of information
● lack of trust
Seller 2 Seller 3

12. Digitalization:
all processes are online
The core principles
of ecosystem growth
Transparency:
information about all auction
participants, bids, etc. is public
Trust:
all details of the deals are
public

13. Prozorro.Sale ecosystem balance interests of all
stakeholders
“Golden Triangle” of cooperation
between Civil society, Government
and Business. Where government
receives an effective tool, business
gets equal rules and access to
assets and civil society - the ability
to monitor the whole process
Government
Civil society
Business

14. Setup of trusted relationships
in the ecosystem
Ministry of Natural
resources
Business and
community
State Property Fund
Ministry of
Economy
Depository
guarantee fund
State bodies
Big
corporates
NGOs Statistical bodies
SMEs
Private
e-commerce
Business
Ministry of
Justice
National Bank of
Ukraine
Civil Society
Ministry of
Agriculture
Universities
Municipal
bodies
everybody sees everything

15. Launched or Transformed
Markets
Real Estate
Land Market
Railcar leases
● Property
Leases
● Commercial Sale
● Privatization
● Non-performing
Loans
● Insolvency
● Distressed Assets
● Mineral Extraction
Rights (Gas, Mineral
water, Crude oil etc)
● Timber Market
● Fisheries Reform
Finance Resources

16. ”
Transparency builds trust
” https://www.opengovpartnership.org/stories/2021-ogp-impa
ct-awards-ukraine-transparent-sale-of-public-assets/
In December 2021 Ukraine has got to
the World Top in Open Governance at
the 10th anniversary of the Open
Government Partnership Initiative.
Prozorro.Sale became one of the best
solution between 78 OGP Members
that ensure transparency.
Prozorro.Sale is a tool that changes
the country, improves the quality of
life in society, and opens up the
actions of the authorities.

17. Productivity
growth
Business
investment
Source: Deloitte analysis.
How trust improves
economic prosperity
Deloitte Insights | delloitte.com/insights
TRUST PER CAPITA
REAL GDP
Cost reduction
Financial sector performance
Quality of investment
Human capital building
Organization improvement
Internationalization

18. Infinite mindset
Naftogas top manager says
Everyone told us: “You loose. I believe that we won. Ukraine
won.
Firstly, DTEK paid even more than expected from the very
beginning. Thus government received more money.
Secondly, they have paid so much, that it will force them to
move faster in gas production.
«
»
TO READ: The Infinite Game: Simon Sinek

20. February 2022…

21. Sellers
activity

22. Challenges
New Priorities
(pause in work of some
markets, new urgent task
for the government)
Mobilization
(team overload, new
bottle-necks)
Organizational
(new processes and
asynchronous communication)
Lack of Resources
(number of auctions and participants
drastically decreased, “life-saving mode
on”)
Lack of Flexibility
(legal and, in some cases,
technical)

24. Market squad
Legal IT
PM
Product
What do we think
about us
PR

25. Market squad
BRAVERY AND STUPIDITY
What others think

26. Old Priorities vs New Reality
???
???
???
???
???

27. New Reality
Relocation
(of businesses to safe
regions)
“Fast Auction”
(for accelerated and
simplified sale of assets)
Adaptation
(adaptation of markets
(technical and legal) to the new
reality to fill budgets during the
war)
Accessibility of an auction
(UIUX changes in order to reach the level
of Accessibility of at least AA)
Charity auctions

28. Exaptation
Exaptation describe a shift in the function during evolution.
Bird feathers are a classic example. Initially they may
have evolved for temperature regulation, but later were
adapted for flight. When feathers were first used to aid in
flight, that was an exaptive use. They have since then
been shaped by natural selection to improve flight, so in
their current state they are best regarded as adaptations
for flight.
«
»
https://en.wikipedia.org/wiki/Exaptation

30. Relocation
Location Transportation Resettlement
selection of a
location for
the company’s
facilities
assistance in
transportation to a
new location
assistance in the
resettlement of
employees and the
search for new
employees
Support
support in
restoring logistics,
purchasing raw
materials and
finding sales
markets

31. Relocation platform
Digitalization
(reject Excel spreadsheets
and phone calls)
Transparency
(monitor the status of the
process in real time)
Cooperation
(unite all stakeholders on one platform)
Efficiency
(effective direction and use
of resources)

32. Relocation
Application Clarification Resettlement
the company
fills out the
application
form and
publishes it
the Ministry of
Economy receives
the application
and processes it
● search for
premises
● logistics and
transportation
Support
support in
restoring logistics,
purchasing raw
materials and
finding sales
markets

33. Services that help recovery
STATE RELOCATION PLATFORM
The project continues to work. With the reduction of active hostilities, the number of requests decreases,
but we expect that with the liberation of the de-occupied territories, there may be new requests.
In general, for the past year, relocated companies transferred to the budget more than 1.14 billion hryvnias
of a Unified social contribution (USC).
companies applied
have moved their
production facilities to
safer regions
800
resumed work at the
new location
632
~2000
Project results (March 2023)

35. Charity Auctions

36. Charity Auctions
Simplification
(our standard procedures
are quite complex)
Trust
(in the process and in the funds
raising the money)
Cooperation
(unite lot owners, buyers, brokers)
Fast Startup
(needed "for yesterday")

39. Charity auctions: first version
Google Form Contact Demo Auction Send links Auction
Separate for
each auction
Create a
demo
auction
with the
required
number of
unique links
Contact each
of the
potential
participants
and try to
understand
the
seriousness
of hisher
intentions
We send
unique links
individually
to each
participant
“Normal”
online-auction

41. Charity lots

42. Charity auctions
~7
UAH million
transferred to
the Armed
Forces
25
successful
auctions
154
participants
● the social mission of Prozorro.Sale,
which brings victory closer
● charity auctions allowed us to remain
present in the media field (+4 million
reaches for the entire period), which
allows effectively develop other
markets to fill the country's budget
● to be continued…

43. One of the participants
I am a US based investor who has been amazed at the
people of Ukraine. Your military has performed heroically and it
has been incredible to see how so many average citizens are
helping whether it is fighting, coordinating supplies to soldiers,
or helping other Ukrainians. Overall I could not be more
impressed with how the people of Ukraine are responding to
such adversity.
I also think the world has a responsibility to help Ukraine… I
figured participating in the auction would be good as I'd either
get the piece myself or make someone donate more to Ukraine.
Can't think of a better way to spend money than helping
Ukraine. There is no better fight than fighting for your family,
land, and future.
«
»

44. New Markets

45. New Markets
Sanctioned
Property
Amber
Small Architectural Forms
and Parking Places
Fishing Seized Assets

46. Which market is doing the best?
Amber
Fish
VS

47. Amber auctions
Results of work for a couple of months
auctions announced
UAH
7 400 000
growth of the starting
price
~3%
78
Project results (April 2023)

48. Auctions for commercial fishing
Results of work for a couple of months
auctions announced
UAH
75 000 000
growth of the starting
price
x5
650
Project results (April 2023)

50. What`s Next?

51. Sustainability
Zero tolerance
to corruption
Competition and
Efficiency
Reforms must
continue
Our Principles for Ukraine’s
Reconstruction and Modernization
Ukrainian-owned
internationally
verified
Coordination
Renewal
Equity and
inclusion
Transparency and
accountability
Publication and
use of open data
RiseUA
0

52. What does Ukraine need and how can we help it?
Reconstruction
Filling budgets through
existing and new
markets
Disposal of the
property of the
aggressor country

53. Before: state property After sold on e-auction
Kyiv Central Bus Station was privatized in 2020 through Prozorro.Sale
Ukraine: impact

54. What’s next