Kyiv Court Voids Auction for Major Zaporizhzhia Granite Deposit Amid Collusion Findings
A Kyiv commercial court invalidated the 2021 auction, sales contract, and special permit for a significant granite deposit in Zaporizhzhia Oblast after prosecutors found collusion between bidders.
What happened
The Prosecutor General's Office reported on June 30 that a Kyiv commercial court invalidated the results of a State Service of Geology and Subsoil electronic auction held in 2021 for a granite deposit in Zaporizhzhia Oblast, along with the associated sales contract and special permit.
The auction was for a 20-year special permit to extract granite from a 20.5-hectare site estimated to contain roughly 9 million cubic meters of high-quality granite, representing about one-tenth of Zaporizhzhia Oblast's granite reserves and benefitting from strong transport infrastructure including highways, rail links, and proximity to Zaporizhzhia International Airport.
Two private companies participated in the auction, each initially bidding approximately Hr 6 million (about $143,000). The winning bidder raised the offer by only 1.8% above the starting price. Investigations by the Prosecutor General's Office and Ukraine's Antimonopoly Committee found these participants coordinated to avoid genuine competition, engaging in anti-competitive collusion that compromised the auction's integrity.
Known from the source
- A 2021 State Service of Geology and Subsoil electronic auction was held for a granite deposit in Zaporizhzhia Oblast.
- The auction and related sales contract and special permit have been invalidated by a Kyiv commercial court as of June 30, 2026.
- The granite deposit site covers 20.5 hectares with about 9 million cubic meters of granite, representing roughly one-tenth of the Oblast's reserves.
- Two private companies bid in the auction, raising concerns of collusion due to identical bids followed by minimal increment from the winning bidder.
- Ukraine's Antimonopoly Committee confirmed the collusion findings.
What remains unclear
The court ruling sided with the prosecution's assessment that the auction process, contract, and permit issuance were against the state's interests due to the winning bidder's bad-faith conduct, which deprived the state of a higher competitive price and undermined the economic purpose of the auction.
What remains unclear: Verify if Kyiv commercial court's ruling text or official documents are available for full legal detail. Confirm if further litigation or appeals related to this auction decision are underway. Check for any official reaction from the private companies involved or the State Service of Geology and Subsoil. Assess if there are any implications or official government statements linking this resource management decision directly to ongoing conflict or reconstruction efforts.
Evidence note
Outside Brief has treated the source material as confirmed within the supplied source context, while retaining attribution to the original publisher.
Original source: New Voice Ukraine. Open the source.
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