Since 2015, Occupiers Have 'Privatized' Over 120 Properties in Crimea

In Crimea, following its occupation by Russia, a systematic appropriation of state property has been occurring, which is termed 'privatization.' According to the representation of the President in the Autonomous Republic of Crimea, from 2015 to 2025, the occupiers have 'privatized' more than 120 properties, valued at over 26.4 billion rubles. This information was conveyed to the Ukrinform agency.

It is noted that the Russian occupation of Crimea is accompanied by predatory practices, one of which has been the so-called privatization. This process involves the appropriation of state property for the benefit of legal and physical entities. The occupiers have implemented this policy through annual 'forecast plans for privatization,' which were approved by authorities controlled by Russia.

To expand the scale of 'privatization,' the Russian authorities applied a federal law that allows small and medium-sized businesses to purchase leased property without auctions and open tenders. This led to an increase in the number of transactions that began occurring from 2015 to 2019, when 'privatization' gained momentum. Initially, it involved isolated transactions with small properties, but over time, it escalated into billion-ruble sales of strategic enterprises.

The first stage of 'privatization' primarily included unfinished construction sites and non-residential buildings in cities such as Simferopol, Yevpatoria, and Yalta. For instance, in 2017, the occupiers 'privatized' the New World sparkling wine factory in Sudak. This enterprise, founded in 1878 by Prince Golitsyn, is a cultural heritage site of national significance, known for its unique underground galleries and vineyards.

Additionally, sanatoriums such as 'Ai-Petri' near Alupka, tourist centers, and non-residential buildings were also included in the 'privatization' process. The total income from 'privatization' during the first stage amounted to approximately 6.88 billion rubles, equivalent to nearly 3.8 billion hryvnias.

From 2020 to 2025, new mechanisms for alienation emerged. In addition to traditional auctions, a scheme for contributing property to the 'charter capitals' of joint-stock companies controlled by the occupation administration began to be actively used. This effectively transformed Ukrainian state property into private assets of structures subordinate to Russia, ignoring even formal trading procedures.

In 2020, the largest privatization deal during the occupation of Crimea took place—the complete sale of the Massandra winemaking enterprise for over 5.3 billion rubles, exceeding 2.9 billion hryvnias. This indicates that the process of 'privatization' continues to gain momentum, despite international norms.

It is worth noting that Sevastopol operates separately from the so-called Republic of Crimea, having its own occupation administration and a 'governor' appointed by Moscow. The most significant deal in the Sevastopol 'privatization' was the sale of the Inkerman winery in 2023. This factory, established in 1961, has become one of the largest in Crimea and a leading wine producer in Ukraine.

The representation of the President in the Autonomous Republic of Crimea emphasized that illegal privatization in Crimea has been ongoing for over 10 years and has a systematic, targeted nature. The funds obtained from this process do not go towards improving the lives of local residents but are partially used to cover the 'deficit' in the budget of the occupation structures. Thus, the occupation transforms into a mechanism for profit at the expense of the depletion of Ukrainian territories.

Furthermore, all the activities described above are illegal under international law. Article 55 of the Hague Regulations of 1907 explicitly prohibits the occupying state from disposing of public property in the occupied territory as its own. The occupying authority can only temporarily administer this property while respecting ownership rights.

The representation also emphasized that Ukraine does not recognize any of the agreements made under this illegal 'privatization,' and all alienated properties de jure remain the property of the Autonomous Republic of Crimea, the city of Sevastopol, the Ukrainian people, or Ukrainian citizens.

In conclusion, Ukrinform previously reported that, according to advocacy expert Artem Oliynyk from CrimeaSOS, the 'nationalization' of property is a tool for pressuring disloyal residents of Crimea. This indicates that the occupying authorities are using various methods to control the local population and resources.