Photo by Grant Durr on Unsplash

Ukraine is planning to sell lots of state-owned property and companies and has now sold a prison. The government will sell many more in the next ten years.

According to Kyiv Post, a state prison in Lviv of 39,800-square-meters has been sold recently on an online auction for 13.6 million dollars. It is located on 32 acres of land and is part of the government’s plan to sell several prisons in Ukraine.

Ukraine has several empty prisons, which are expected to be sold over the next ten years. The government has previously said that the sales do not mean that it will be releasing prisoners but that some prisons are empty, old, outdated, and, therefore, not needed.

The government closed the prison in Lviv back in 2018, and the expected price at the auction was 4.8 million dollars, but competitive bidders made the price rise to 13.6 million dollars. The company Development Engineering Service, an architectural company in Lviv, won the auction and bought the prison in Lviv.

“The price increased during the auction almost threefold,” wrote Justice Minister Denis Malyuska on Facebook. “It sold like a hot cake.”

More prisons on the way

The government has previously tried to sell a prison north of Kyiv without luck due to a too-high asking price. The government, however, continues to push for the sale of prisons, where it is planning to sell one-third of its around 100 prisons in Ukraine. Four in 2021.

Ukraine is also planning to sell many state-owned companies to combat inefficiency and corruption, and the sale of the old prisons is also contributing to reducing costs. 

“Instead of abandoned and ruined trash, we will get new prisons that meet European standards that aren’t a disgrace to the state,” Justice Minister Denis Malyuska said and pointed out that 30 percent of the revenue for the sale of prisons will go to the state budget and the rest to building new prisons.

It is expected that the new owners of the prison in Lviv will tear it down and build housing, public gardens, a school, and a kindergarten.