I. LAND MARKET
II. REAL ESTATE
III. CONSTRUCTION
IV. LARGE-SCALE PRIVATISATION
V. STATE INCENTIVES FOR INVESTMENT ATTRACTION
VI. OTHER NEWS
VII. INTERNATIONAL COOPERATION IN UKRAINE’S RECONSTRUCTION
On 21 August 2024, the Parliament of Ukraine adopted a draft Law of Ukraine, "On Amendments to Certain Legislative Acts of Ukraine Regarding the Simplification of the Procedure for Allocating Land Plots for the Development of Digital Infrastructure" (Reg. No. 9549).
The key innovations include:
NB!
Under the legislation, the definition "electronic communications networks" means a complex of technical means and structures intended for the provision of electronic communication services, involving the reception and/or transmission of information, excluding services involving editorial control over the content of
the transmitted information (eg, the Internet).
The State Agrarian Register (SAR) has been launched through a collaboration between the Center for Humanitarian Demining and the Ministry of Agrarian Policy and Food of Ukraine. This platform enables submission of applications for participation in a program that compensates for the cost of demining agricultural land or provides reimbursement for land cleared between 24 February 2022 and 15 April 2024. Under this arrangement, the state will reimburse farmers for 80% of the cost of land demining – whether for privately owned or leased land – through service provision auctions.
The legislative framework for the organisation of the SAR shall become effective on 18 January 2025.
On 5 July 2024, the Government adopted Resolution No. 785, which regulates the procedure for state registration of freehold ownership to newly constructed integral property complexes or other sets of buildings.
According to the new regulations, when a complex of buildings has been assigned individual identifiers in the Unified State Electronic System in the Construction Sector, the state registrar must process separate applications for each of these buildings. Subsequently, separate sections are opened for each building, with a corresponding registration number assigned accordingly.
To remind, previously, the number of applications required for registering freehold ownership of property complexes or sets of buildings was not regulated. Registrars conducted this procedure based on the technical capabilities of the State Register of Proprietary Rights to Immovables and guidance from the Ministry of Justice of Ukraine.
On 9 August 2024, the Government adopted a Resolution, "Certain Issues Regarding the Implementation of a Pilot Project for the Introduction of the Urban Planning Cadastre at the State Level" ("UPCS"). This initiative aims to digitize the urban planning sector, which is critically important for the swift and transparent reconstruction of Ukraine.
Through the UPCS, the following will be facilitated, among other things:
On 9 August 2024, the Government approved a streamlined process allowing non-residents to obtain the right to conduct construction activities through a simplified electronic declaration procedure. This process requires registration of a permanent representative office. The relevant amendments were introduced to the Resolution of the Cabinet of Ministers of Ukraine No. 314, dated 18 March 2022.
For further details, please refer to the link: https://www.integrites.com/publications/foreign-companies-to-obtain-construction-permits-under-a-simplified-procedure/
In line with aforesaid changes, on 3 September 2024, the Law of Ukraine No. 3257-IX came into effect, which establishes that the registration of branches and representative offices will now be conducted through the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Formations (the "USR"). From now on, there is no need to contact state statistical authorities to obtain a USR code.
On 24 September 2024, the CMU adopted Resolution No. 1094, "On Amendments to the List of Construction Works That Do Not Require Permits for Their Execution and After Completion of Which the Object Is Not Subject to Commissioning." Under this resolution, technical re-equipment has been removed from the list of construction works that do not require permitting documents and do not require commissioning after completion.
These changes are of a more technical nature and align the terminology with the current legislation, which classifies construction as including only new construction, reconstruction, restoration, and major repairs.
The first online auctions under the "Large Privatisation –
2024" program have officially launched on the "PROZORRO.SALE" platform. This program renews the privatisation of significant state-owned assets, with the goal of attracting substantial investment into Ukraine's economy. The initiative is expected to stimulate business growth and create new employment opportunities.
A catalogue of large privatisation assets is available via the link.
The upcoming electronic auctions for large privatisation assets are scheduled as follows:
100% state share in "Aerok"
LLC, a leading manufacturer of aerated concrete products
100% state share in "Demurinsky Mining and Processing Plant" LLC, specialising
in het extraction of titanium and zirconium
66.65% state share in "Lybid
Investment Union" LLC, which owns the Shopping Centre "Ocean Plaza",
one of Ukraine’s most prominent commercial real estate assets
The State Property Fund of Ukraine has already held several high-profile auctions, such as:
privatisation of the property complex of "Hotel Ukraine SOE," located in the heart of Kyiv, with a winning bid of ₴ 2,511,777,888
privatisation of the 100% state share in "United Mining and Chemical Company" JSC with a winning bid of ₴ 3,938,351,581
Also, the privatisation of the property complex of "Kozatskyi Hotel" SOE, located in the centre of Kyiv, was completed as a part of the small-scale privatisation, with a winning bid of ₴ 400,001,000.
In addition, on 19 October 2024, the Law of Ukraine "On the Peculiarities of the Sale of Shares Owned by the State in the Charter Capital of Banks" came into force. This law aims to reduce the state's presence in the banking sector by facilitating private investment.
The recent introduction of regulatory measures aimed at implementing state support instruments for investment projects with significant investment has brought encouraging news for investors.
The Government has approved the first investment agreements under the state compensation mechanism, offering up to 30% reimbursement of capital investments. This marks the official launch of the program designed to support projects with significant investment, targeting investors committed to investing over €12 million. Eligible projects can cover a range of sectors, including manufacturing, mining, transportation, education, healthcare, tourism, and other strategic industries.
The initial agreement is expected to be executed with a major agricultural holding company, which intends to construct a plant in the Poltava region.
A subsequent agreement is forthcoming to support the implementation of an investment project for the construction of a water park.
To promote the development of industrial parks, the Ministry of Economy of Ukraine has entered into three cooperation agreements with banks, including "Ukreximbank JSC," "Ukrgasbank PJSC," and "Oschadbank JSC." These agreements enable industrial park initiators and managing companies to apply for funding in the following areas:
- Development of industrial park infrastructure;
- Compensation for costs related to connecting to and accessing engineering and transportation networks.
The first UAH 150 million allocated through a state incentive agreement will go to an industrial park in Dnipro.
NB!
Recipients of non-repayable funds or compensation must fulfil specific conditions: to commission buildings and/or production facilities with a total area of at least 5,000 square meters and attract two participants within three years of signing the state incentive agreement.
On 17 September 2024, the Verkhovna Rada of Ukraine passed the first reading of Draft Law No. 11520, aimed at improving public procurement processes to enhance transparency, efficiency, and alignment with European standards. The key amendments include:
Additionally, the draft law prohibits public procurement from companies with connections to Russia, Belarus, Iran, or residents of these states.
Also, on 21 October 2024, the President of Ukraine signed a law on introducing the Law of Ukraine, "On Public Procurement" were submitted to the President for signature. In line with these changes, documents containing information on prices for material resources are recognized as integral annexes to service procurement contracts in the construction, reconstruction, and restoration sectors, and must be publicly disclosed on the Prozorro platform alongside the procurement contract.
On 20 August 2024, a financial agreement was ratified between Ukraine and the European Investment Bank during the International Conference on the Reconstruction of Ukraine, securing €100 million to support communities, particularly those affected by Russia’s military aggression.
The funding will be directed towards the restoration of municipal infrastructure, healthcare facilities, infrastructure related to wastewater management, water and heat supply, as well as housing projects for internally displaced persons.
Additionally, the European Union has announced a call for proposals under the Investment Program for Ukraine aimed at attracting investment for Ukraine’s recovery. This decision was made following the second meeting of the Investment Program's Steering Committee on 20 September 2024, when EU member states approved the launch of a call for project proposals in three key areas: