Reconstruction Digest:
Ukraine 2025

CONTENTS


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I. LAND

The functional zoning may once again be determined by a detailed plan of the territory

The President of Ukraine has signed the Draft Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine Concerning the Use of Land Plots for the Development of Digital Infrastructure" (registration no. 9549 of 1 August 2023) (Draft Law), which introduces important changes regarding the determination of the functional zoning of territories.

The transitional period introduced by the 2021 spatial planning
reform ended on 1 January 2025. During this period, local authorities were permitted to amend urban planning documentation without complying with the new requirements for its composition and content. They were also obliged to develop Comprehensive Spatial Development Plans (CSDPs) – the primary urban planning documents intended to form the basis for developing lower-level urban planning documentation.

The most significant feature of the transitional period was the ability to establish or alter the functional zoning of a territory via a Detailed Plan of the Territory (DPT), even if the settlement's master plan stipulated a different functional zone. 

For objective reasons, particularly due to martial law, most local authorities were unable to develop CSDPs or update existing urban planning documentation by 2025. This has, firstly, prevented the ability to determine functional zoning and the designated use of land plots in areas lacking such documentation. Secondly, it has made it impossible, in the short term, to bring existing documentation into compliance with legislative requirements. This, in turn, has precluded the possibility of establishing or changing the functional zoning of territories and the designated use of land plots through DPTs.

To address this issue, several legislative attempts were made to extend the transitional period. One of these was the Draft Law.

The Draft Law, among other things, establishes an additional transitional period until 1 January 2028, during which:

  • The ability to establish or change functional zoning through DPT (on land where no CSDPs have been approved) is reinstated;
  • Urban planning documentation approved before 2021 may be amended without the need to comply with new legislative requirements, subject to certain restrictions;
  • Urban planning documentation whose development commenced before 2021 may be completed under the old rules;
  • Local authorities must, by the end of the transitional period, submit to the State Land Cadastre (SLC) data on functional zones, heritage site boundaries, historical areas, protection zones, construction limitations, etc.

As known, in addition to Draft Law No. 9549, similar provisions were also contained in:

  • Draft Law No. 1347, which was adopted in principle by the Verkhovna Rada of Ukraine and is being prepared for a second reading (governs the approval of spatial planning schemes while also extending the transitional period), and
  • Draft Law No. 12283, which was adopted in principle by the Verkhovna Rada of Ukraine and is being prepared for a second reading. It extends deadlines for the period of martial law and for three years following its termination or cancellation.

Given that the President of Ukraine has signed Draft Law № 9549, it is expected that the issue of the transitional period for updating urban planning documentation is resolved until 2028, and other pending legislative initiatives on this matter are no longer relevant.


II. CONSTRUCTION

Automation of expert review checks for construction projects

On 15 July 2025, amendments to the "Procedure for Approval of Construction Projects and for Conducting their Expert Review approved by Resolution of the CMU No. 560 of 11 May 2011" came into force. These amendments introduce new requirements for conducting expert reviews through the functionality of the Register of Construction Activity.

Henceforth, the results of expert reviews of design documentation are to be generated directly within the Register's system. Once completed, they will automatically undergo verification by the electronic system's tools against specific criteria, including logical consistency, completeness and accuracy.

Should any non-compliance be detected – for instance, inconsistencies between the expert review report and information about the land plot or construction object or non-compliance in the qualification certificates of the designers – the system will automatically block the submission of the relevant report.

These changes form part of an ongoing reform to digitalise the construction sector. The aim is to minimise human interference, prevent manipulation and enhance the transparency of the expert review procedure for construction project documentation.

The amendments also clarify the scope of expert review, which, in combination with the report's algorithmic structure, is intended to ensure a unified approach to its execution.

Construction notifications via the Diia application

On 18 June 2025, the Government adopted Resolution No. 713, allowing users to submit notifications of the commencement of construction works, as well as declarations of readiness for objects being built on the basis of a "building passport" via the Diia mobile
application.

Property valuation in Ukraine may undergo reform

The corresponding Draft Law No. 13435 was registered on 27 June 2025. Its objective is to establish unified grounds, principles, methods and procedures for conducting property valuation and professional valuation activities in Ukraine, in line with modern global practice.

Key changes include:

  • transition to international standards (IVS and EVS);
  • valuation of real estate as a single object:
    it will no longer be necessary to value the land plot and the real estate upon it separately;
  • unified standards in judicial expert assessments and property valuations, with expert conclusions subject to peer review;
  • creation of a Unified Register of Valuers and a State Register of Property Valuation Reports to ensure transparency and reduce the risks of malpractice or fraud;
  • opening of the Ukrainian valuation market to foreign valuers, provided they can confirm their professional status in their home country.

III.  Infrastructure

Reform of public-private partnership

On 30 July 2025, the President of Ukraine signed Draft Law No. 7508 "On Public-Private Partnership". This new legislation replaces the current Law of Ukraine "On State-Private Partnership" and introduces a modernised, more flexible and transparent public-private partnership (PPP) framework. The new Law aims to establish PPP as a foundation for Ukraine's post-war reconstruction by promoting efficient cooperation between the state and private sector actors.

More details – in the article 


IV.  Housing


Repeal of the Housing Code of Ukraine

On 16 July 2025, the Verkhovna Rada of Ukraine adopted in its first reading Draft Law No. 12377 "On the Fundamental Principles of Housing Policy", which provides for the repeal of the long-outdated Soviet-era Housing Code of the Ukrainian SSR, as well as the Law of Ukraine "On the Privatisation of the State Housing Fund".

The Draft Law is intended to introduce modern approaches to housing policy and create institutional mechanisms to address housing needs, which have become particularly urgent due to russia's military aggression.

Among the important changes, the following are noteworthy:

  • Introduction of the Unified Information and Analytical Housing System (UIAHS) – a digital platform that will record data on housing stock, operators of affordable housing, social housing facilities, recipients of state support and individuals eligible for such support in realising their right to housing, etc. The UIAHS is designed to ensure transparency, provide consolidated data on housing needs and support the generation of reliable statistics for housing policy.
  • Ukraine's housing stock will continue to consist of
    private, municipal and state-owned housing. Municipal and state housing will not be subject to privatisation or alienation but may be leased with an option to buy. Thus, the Draft Law effectively proposes replacing free-of-charge privatisation with a mechanism of long-term rent-to-own agreements.
  • Regulation of affordable housing operators 
    For the first time, the Draft Law provides for the regulation of the activities of "operators of affordable housing" – entities primarily engaged in constructing and/or managing affordable housing. These operators will be entitled to receive subsidised long-term loans, grants and compensation from state and local budgets. The effective operation of affordable housing operators is crucial for the development of the rent-to-own housing market.
  • Support mechanisms 
    The Draft Law introduces new legal definitions, including "persons who may benefit from state support in the realisation of their right to housing" and "affordable housing". It also establishes a list of financial and credit support mechanisms, such as subsidised long-term loans, partial financing of housing cost, financial leasing and rent-to-own options. The list is not exhaustive.
    These mechanisms may also apply to housing construction through associations in housing and construction cooperatives (HCCs) or housing cooperatives (HCs).
    Notably, the Draft Law finally addresses long-standing regulatory gaps in the use of HCCs to cover housing needs by requiring their registration in the UIAHS and the submission of data on individuals acquiring housing through such mechanisms, thereby enhancing transparency and oversight.
  • Mandatory state registration of residential leasehold rights 
    The Draft Law requires the mandatory state registration of residential lease rights, which will help formalise lease relations and strengthen protection of tenants' rights.

On 23 July 2025, the relevant parliamentary committee established a working group to finalise the Draft Law for second reading. If adopted, the law is expected to come into force no earlier than December 2025.

Pilot project:
municipal (social) rental housing fund

On 2 July 2025, the CMU adopted Resolution No. 796 approving the Procedure for the implementation of a pilot project to create a municipal (social) rental housing fund (the Fund). The project, introduced to support vulnerable population groups, will run for two years.

At least 10% of the Fund must be allocated to housing for elderly internally displaced persons (IDPs), families with persons with disabilities requiring care and families with orphans. The remainder is intended for other socially vulnerable groups, veterans, families of fallen defenders, etc.

Financing for housing construction will be sourced from local budgets, international grants, loans, technical assistance and other permitted sources. Local communities will act as the commissioning bodies for the construction.

The Procedure defines housing standards, eligibility criteria and cooperation mechanisms between local communities and the State Agency for Restoration and Development of Infrastructure. Construction will be carried out based on reusable designs. In the first phase, approximately UAH 540 million in international financing is expected to be allocated to communities in Zaporizhzhia, Mykolaiv, Izium, Bucha, and Makariv.

Over 1,500 Mariupol residents will be able to receive housing

On 7 July 2025, the CMU adopted a Procedure launching a pilot project to support IDPs from Mariupol by offering them either subsidised mortgage loans or access to newly built municipal (social) rental housing.

The construction or acquisition of housing under this programme will take place in relatively safe regions – specifically in the Lviv and Kyiv oblasts (Bila Tserkva and Obukhiv districts). The initiative will last for two years from the date the resolution comes into force.

Financing is to be provided through international aid, grants, charitable contributions, local budget funds and other permitted sources.

The project envisions:
-  UAH 2.8 billion to be allocated directly to construction;
-  UAH 2.2 billion to support subsidised mortgage lending.

The project's implementation will be coordinated by the Ministry for Development of Communities and Territories of Ukraine, with the participation of the Mariupol City Military Administration, the State Fund for Support of Youth Housing Construction, PJSC Ukrinzhytlo and the local councils (where the housing is being constructed/leased).


V.  DEFENCE 

State incentives to support enterprises of the defence-industrial complex (Defence City)

The corresponding Draft Law No. 13420 was registered on 25 June 2025. Its objective is to support and stimulate the development of enterprises within the defence-industrial complex (DIC) by creating the most favourable regime for their activities.

Among the key proposed measures are tax benefits, including exemptions or reductions in land fees and real estate tax for the duration of an enterprise's inclusion in the List of DIC Enterprises.


VI.  INVESTMENTS, GRANTS 

Provision of grants for the processing industry

On 7 July 2025, the CMU adopted Resolution No. 813, which introduced amendments to a number of legal and regulatory acts concerning the provision of grants to enterprises in the processing industry.

Key changes:

  • Expanded grant objectives
    Funding is now provided not only for the development but also for the restoration of production facilities, particularly those destroyed or damaged as a result of the armed aggression by the russian federation.
  • Increased maximum funding amounts:
    • Up to UAH 8 million – the general limit;
    • Up to UAH 16 million – for the restoration of production facilities.
  • Flexible co-financing conditions:
    • Up to 80% grant funding – for enterprises from frontline or occupied territories or those in critically important sectors (in particular, UAVs, the printing industry);
    • Up to 70% – for the procurement of Ukrainian-made equipment;
    • Up to 50% – in other cases.
  • Compensation for losses
    In the event of the destruction of an enterprise, established using grant funds, as a result of military action, the state will compensate the recipient for their own contribution.

VІІ.  OTHER NEWS

Construction of the Lviv–Poland European-gauge railway: The EU to allocate €76 million to Ukraine for the project

On 3 July 2025, the European Union decided to allocate 76 million euros in grant aid for the implementation of the first stage of the construction of a European-gauge railway in Ukraine. The project was one of 94 selected by the Coordination Committee of the Connecting Europe Facility (CEF) programme from among 258 applications submitted in a recent call for proposals, which concluded on 21 January 2025.

The project will help connect Lviv with the Polish border and will open a new direct rail link to the EU.

Upon completion of the works, Ukrainian trains will be able to travel to EU countries without transfers or delays at the border.

Bilateral agreement between Switzerland and Ukraine

On 25 June 2025, the Swiss Federal Council approved a draft bilateral cooperation agreement between Switzerland and Ukraine regarding Ukraine's reconstruction.

On 12 February 2025, the Swiss Federal Council adopted a programme for Ukraine for the period 2025-2028, which focuses on the protection of the civilian population, the achievement of peace and economic recovery and the strengthening of Ukraine's political and legal institutions. To achieve these objectives, 1.5 billion Swiss francs were allocated through 2028.

 What does the agreement entail?

The agreement will permit Switzerland to provide Ukraine with non-reimbursable financial assistance for the procurement of goods and services from Swiss companies for reconstruction projects.

Support will focus primarily on sectors that are priorities for Ukraine, such as energy, transport, mobility, heavy industry and others. Within the agreement's framework, Ukraine will act as the primary entity in the project selection process, formulating its reconstruction needs.

The Swiss State Secretariat for Economic Affairs (SECO) plans to partially cover investment risks, notably through war risk insurance, which is critically important for the implementation of investment projects.

Ukraine and France to create a fund to support critical infrastructure and priority sectors of the Ukrainian economy

On 7 July 2025, the CMU adopted Order No. 672-r, which approved the draft of a corresponding declaration of intent.

Further work in this area is anticipated.

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