The participation of municipal officials in the training programme “Steps for Specialists. Municipal Property Management” and subsequent one-to-one consultations provided by U-LEAD with Europe played a key role in this, helping to develop an action plan and launch the process within the legal framework.
From training to taking real action
Valentyna Krasovska, the Head of the Municipal Property Department of Murovani Kurylivtsi Settlement Council, joined the training programme in 2025. According to her, it was the combination of training modules, practical experience and lively exchanges with other municipalities that provided the necessary understanding of the processes — but did not answer all the questions.
“Our municipality had never initiated a privatisation process before, so we essentially had to start from scratch. Although the law is the same for everyone, each municipality implements it in its own way. And this is where the most doubts arise,” she says.
That is why, as she stated, one-to-one follow-up consultations provided by U-LEAD advisers proved to be exceptionally valuable. They managed to break down the tricky bits, from figuring out which body would manage privatisation to financial issues, such as how proceeds from property sales would be credited and what they could be used for.
The first step: one property
To limit the risks, Murovani Kurylivtsi Settlement Council decided to start with one municipal property and try out the whole process before scaling up the approach. This involved drawing up technical documentation and registering ownership rights.
The next stage was the adoption by the Settlement Council of a number of decisions over four meetings to:
- determine the body that would manage privatisation;
- create an auction commission;
- approve the terms of sale and information notice;
- announce an auction.
The property for sale was a non-residential building complex that had been unused for years and was effectively falling into a state of disrepair. The lot was formed and put up for electronic auction following a decision by Murovani Kurylivtsi Settlement Council.
The starting price was UAH 275,000. During the auction process between two bidders, the price rose to UAH 310,000.
“The figure is relatively modest, but the point is different: property that was not used for its intended purpose and incurred maintenance costs generated income for the settlement budget,” explains Valentyna Krasovska.
For the head of the municipality, Halyna Tsybulska, the launch of privatisation is not just about revenue for the budget:
“In addition to generating further revenue, this is also an opportunity to preserve existing premises — to give them a new lease of life. When a property is left unused for years, it deteriorates and creates problems. An owner means development, jobs and tidiness in the area,” she says. “There is interest from farmers and businesses. We need these premises to be used, rather than left idle, so that they can benefit the entire municipality.”
From the first sale to systematic property management
Once the first auction in Murovani Kurylivtsi came to an end, the privatisation process ceased to be theoretical. They gained experience, understanding of procedures and, last but not least, confidence that the municipality is capable of completing all stages legally and within the specified time frame.
The Settlement Council continues to analyse and organise municipal property. Several other sites are currently being prepared: management decisions will be made regarding them based on their condition, potential use and relevance to the municipality.
“Once you’ve been down this road once — with all the doubts, risks and unexpected issues — it’s not so scary anymore. There is a clear understanding of the steps to take and an assurance that it works,” says Valentyna Krasovska.
According to her, the first case served as a kind of “system test” that allowed the municipality to see the entire process in action, from inventorying property to finalising the sales contract. This enabled the settlement council to move from a one-off decision to planning further steps.
“Here at U-LEAD, we’re extremely proud of the alumni of our training programmes in municipal property management. When the know-how gained during seminars and workshops is applied directly in the municipality, it produces quick and tangible results. Over UAH 300,000 in budget revenues is a considerable figure for a first step,” says Viktoriia Kopchak, aTraining Programme Coordinator and Adviser on Decentralisation and Local Self-Government at the Regional Office of U-LEAD in Kherson Oblast. “While our training focuses on leasing and privatisation tools, their implementation encourages the municipality to systematically conduct inventories and put title documents in order. This is the groundwork for sound strategic asset management. Initiating change is not easy, but the example of Murovani Kurylivtsi Settlement Council clearly shows that it is both necessary and possible.”
This case highlights the importance of not only selling individual assets, but also developing a systematic approach to managing municipal property, including inventory, analysis of the feasibility of using the property and transparent decisions regarding its future. This approach enables municipalities to transform “dead” assets into a resource for development — and reduce the financial burden on local budgets.
