Since 2014, the Russian occupation of Crimea has been accompanied by predatory practices. One of its elements has been the so-called privatization, which involves the expropriation of state property for the benefit of legal entities or individuals.

The Mission has found that from 2015 to 2025, the occupiers “privatized” more than 120 properties worth over 26.4 billion rubles. The “privatization” affected various sectors, including machine building, winemaking, the health resort industry, and oil and port infrastructure.

This policy was carried out through annual “privatization forecast plans” approved by Russian-controlled representative bodies. To expand the scale of “privatization,” the Russians extended to Crimea a federal law that allows small and medium-sized businesses to buy out leased property without auctions or open tenders.

For example, from 2015 to 2019, “privatization” grew in scale: from isolated deals involving small real estate properties to billion-ruble sales of strategic enterprises. This stage primarily included the “privatization” of unfinished construction projects and non-residential buildings in Simferopol, Yevpatoriia, and Yalta.

During the first stage, in 2017, the occupiers “privatized” the “Novyi Svit” champagne winery in Sudak. Founded in 1878 by Prince Golitsyn, the enterprise is a cultural heritage site of national importance, with unique underground galleries and vineyards.

At the same time, sanatoriums such as “Ai-Petri” near Alupka, tourist centers, and non-residential buildings also fell under Russian “privatization.” The total income of the occupiers from “privatization” during the first stage amounted to about 6.88 billion rubles.

In 2020-2025, new mechanisms of alienation emerged: alongside traditional auctions, a scheme of transferring property to the “charter capitals” of joint-stock companies controlled by the occupying “administration” was actively used. This effectively converted Ukrainian state property into private assets of Russian-controlled structures, bypassing even formal bidding procedures.

In 2020, the largest privatization deal during the occupation of Crimea took place – the complete sale of the “Massandra” winery for over 5.3 billion rubles. It is one of the oldest and most famous wineries in Ukraine, comprising over 350 hectares of vineyards, unique cellar funds with collection wines from the early 20th century, and cultural heritage sites. The enterprise is a strategic asset of Crimean winemaking.

It is worth noting that in this case, Sevastopol acts separately from the so-called Republic of Crimea as an independent entity within the Russian Federation, with its own occupying “administration” and a “governor” appointed by Moscow.

The most significant and largest deal in Sevastopol’s “privatization” was the sale of the Inkerman Vintage Wine Factory in 2023. Founded in 1961, the factory became one of the largest and leading wine producers in Crimea and Ukraine.

The illegal “privatization” in Crimea has been ongoing for over 10 years and is systemic and targeted. The funds from it are not used to improve the lives of local residents but are partly used to cover the “deficits” in the budgets of the occupying structures. Thus, the occupation is turning into a mechanism of enrichment at the expense of depleting Ukrainian territories.

Furthermore, all the activities described above are illegal under international law – Article 55 of the 1907 Hague Regulations expressly prohibits an occupying state from disposing of the public property of the occupied territory as its own. It can only be temporarily administered in compliance with the right of ownership.

Ukraine does not recognize any of the listed agreements, 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.