Reconstruction Digest:
Ukraine

СONTENTS

I. CONSTRUCTION

II. RECOVERY

III. FOR INVESTORS

IV. PRIVATISATION

V. HORECA 

I. CONSTRUCTION

The Government expands aviation-related development restrictions during martial law

The Cabinet of Ministers of Ukraine ("CMU") has amended the Procedure for determining the maximum height and planning restrictions for the development of land plots in urban planning conditions and restrictions ("Procedure"). The respective amendments were approved by CMU Resolution No. 524 dated 24 April 2026 ("Resolution"), which will apply for the duration of martial law.

The Resolution significantly broadens the scope of the Procedure. In particular, as part of the procedure for obtaining urban planning conditions and restrictions ("UPCRs"), an assessment of the impact of a planned development is now carried out not only for projects located within near-aerodrome territories, but also for projects situated within areas designated for training and other flights of state aircraft outside near-aerodrome territories.

The assessment is carried out through the interaction mechanism between the competent urban planning and architecture authority responsible for issuing UPCRs and the State Aviation Administration of Ukraine, in respect of civil aviation facilities, and/or the Ministry of Defence of Ukraine, in respect of state aviation, through the Unified State Electronic System in the Construction Sector.

In addition, the Procedure now applies to:

- the preparation of conclusions on the possibility or impossibility of locating facilities subject to the special development regime introduced during martial law, including: (i) facilities intended for the relocation of enterprises; (ii) facilities for the temporary accommodation of internally displaced persons; and (iii) certain transport and logistics infrastructure facilities, among others; and

- the approval of the location of facilities exceeding150 metres in height, regardless of their location.

The Resolution also separately regulates the procedure for assessing the impact of planned construction within the near-aerodrome territories of aerodromes and heliports that do not have a valid certificate, or whose certificate expired during martial law. In such cases, the relevant conclusions may be issued on the basis of an assessment by the operator of the aerodrome or heliport and/or by the air navigation service provider of either: (i) the relevant aerodrome or heliport; or (ii) another aerodrome or heliport holding a valid certificate.

Furthermore, where available, the results of an aeronautical study may be taken into account when preparing the assessment. This enables an additional evaluation of the potential impact of the proposed development on flight safety and airspace utilisation.

The Resolution therefore not only adapts the regulatory framework to the conditions of martial law but also substantially expands the circumstances in which aviation-related restrictions must be considered when planning development projects. The changes are particularly relevant for high-rise developments and other structures exceeding 150 metres in height, irrespective of their location.

Developers may choose the authority for permitting procedures

On 2 June 2026, Resolution of the Cabinet of Ministers of Ukraine No. 528 entered into force, introducing an experimental procedure for the provision of administrative services in the construction sector. The Resolution enables developers to independently choose the authority that will carry out permitting and registration procedures in the construction sector: either the relevant local state architectural and construction control authority or the State Inspection for Architecture and Urban Development of Ukraine ("DIAM").

The new procedure applies to:

- facilities classified as having minor (CC1) and medium (CC2) consequences; and

- facilities constructed on the basis of a building passport.

Under the experimental procedure, DIAM is authorised to carry out permitting and registration procedures in respect of such facilities, including:

- registration of documents granting the right to perform preparatory and construction works;

- amendment, cancellation or termination of documents granting the right to perform preparatory and construction works; and

- acceptance of completed construction facilities into operation.

The introduction of this mechanism represents another step towards the deregulation of the construction sector and Ukraine’s recovery efforts. By allowing developers to choose between local authorities and DIAM, the new procedure is expected to increase administrative flexibility, enhance competition between competent authorities and facilitate a more efficient permitting process.

DIAM to review complaints against refusals to issue urban planning conditions and restrictions

In order to enhance the predictability and transparency of urban planning procedures, as well as to create an additional mechanism for protecting construction clients against unjustified refusals to issue urban planning conditions and restrictions ("UPCRs"), on 24 April 2026 the Cabinet of Ministers of Ukraine adopted Resolution No. 527 "On Amendments to Resolution of the Cabinet of Ministers of Ukraine No. 722 dated 24 June 2022". Under the new rules, a construction client may submit a complaint to DIAM through the Unified State Electronic System in the Construction Sector or the Diia portal if it considers such refusal to be unjustified.

Pursuant to the amendments, DIAM, acting through chief inspectors for construction supervision, will review complaints against refusals to issue UPCRs within 20 business days from the date of submission of the relevant complaint.

Following the review, DIAM may:

- leave the refusal decision unchanged – if no breaches of urban planning legislation are identified in the adoption of such decision;

- uphold the complaint – if breaches by the authorised urban planning and architecture authority are identified and provided that there are no statutory grounds for refusing to issue the UPCRs.

If the complaint is upheld, the subsequent registration of a notice on commencement of construction works or the issuance of a construction works permit will be carried out by the state architectural and construction control authority, provided that the submitted documents comply with the requirements of local- urban planning documentation.

The new rules will apply throughout martial law and for one year following its termination or cancellation.

Construction price database to become a new pricing benchmark in Ukraine

On 28 April 2026, the Ministry for Development announced that it had started populating the Price Database for Construction Products and Other Material Resources (the "Database"), a new tool integrated into the Unified State Electronic System in the Construction Sector, which is intended to serve as the foundation of the electronic pricing system in construction.

The establishment of the Database is provided for by Resolution of the Cabinet of Ministers of Ukraine No. 1512 dated 19 November 2025 "On Certain Specifics of Determining the Cost of Construction, as well as Routine Medium Repairs, Routine Repairs and Operational Maintenance of Public Roads under Martial Law", which introduced special rules for determining the cost of construction for projects implemented with the involvement of budgetary funds, funds of state and municipal enterprises, as well as loans secured by state guarantees.

A key element of the system is the Codifier of Construction Products, which provides for the assignment of a unique code and a standardised description to each material resource. Such codes are expected to be used in design documentation, cost estimates, contracts and acceptance certificates for completed works, ensuring a unified approach to the identification of materials throughout the lifecycle of a construction project.

The Database is being populated from several sources: data from the Prozorro system, customs and tax statistics, market analytics, as well as directly from manufacturers and suppliers of construction products. Price analysis reports prepared by project participants are also taken into account.

During the first three months following the launch of the Database current prices for material resources will be determined based on the results of market analysis carried out by the client or the contractor, irrespective of the average price indicators reflected in the Database. After the end of this transitional period, the indicators in the Database will effectively become a pricing benchmark for determining the cost of material resources in construction. In particular:

  • when preparing investor cost estimate documentation, current prices for material resources must not exceed the average prices of the relevant resources reflected in the Database;
  • when determining and agreeing the contract price, the requirement to use the lowest current prices will apply, which may likewise not exceed the average indicators in the Database;
  • when making payments under a dynamic contract price, the actual cost of resources will be taken into account, subject to compliance with the average price indicators established by the Database;
  • for a fixed contract price, the price agreed by the parties in the construction contract will apply.

If information on a specific material resource is absent from the Database, its cost will be determined based on the results of market analysis.

II. RECOVERY

New framework agreement procurement procedure introduced for recovery projects in Ukraine

    By Resolution No. 520 dated 24 April 2026, the Cabinet of Ministers of Ukraine approved the Procedure for implementing an experimental project for procurement using framework agreements for the recovery of settlements and facilities affected by hostilities, terrorist acts or sabotage caused by the armed aggression of the Russian Federation.

    The experimental project will be implemented for the duration of martial law and for 12 months after its termination or cancellation, but in any event for no longer than two years from the date on which the Resolution enters into force. The Resolution will enter into force on 25 June 2026.

    The new mechanism allows contracting authorities to procure works and services for recovery through framework agreements, including on a turnkey basis. Such procurement may include new construction, reconstruction, capital repairs, technical inspections, dismantling works, engineering surveys, development and expert review of design documentation, designer’s supervision and technical supervision, as well as consulting engineer services, provided that such works or services are carried out for the recovery of settlements and facilities affected by hostilities, terrorist acts or sabotage caused by the armed aggression of the Russian Federation.

    Procurement through a framework agreement may be used for services with a value of UAH 100,000 or more and works with a value of UAH 1.5 million or more.

    The mechanism will operate in two stages:

    • first, the contracting authority conducts a qualification selection of candidates for inclusion in the framework agreement;
    • subsequently, specific procurement procedures are carried out only among the candidates included in the relevant framework agreement, through open tenders or a request for proposals.

    A framework agreement is concluded for a period of at least one year, but not longer than the implementation period of the experimental project. If fewer than three applications have been submitted by the deadline for submission of applications, the qualification selection is automatically cancelled by the electronic procurement system. Further procurement under the framework agreement is possible only if at least three candidates have been included therein.

    The Procedure also sets out the procedural timelines. In particular, the deadline for submitting applications to participate in the qualification selection may not be less than 15 days from the date of publication of the announcement, while the contracting authority’s review of an application must not exceed 10 business days, with the possibility of a reasoned extension to 15 business days. Candidates may submit applications throughout the entire term of the framework agreement, but no later than 30 days before its expiry.

    For procurement under a framework agreement, the contracting authority may apply not only price, but also other evaluation criteria, including payment terms, performance period, warranty service, personnel experience, and environmental or social criteria. At the same time, the weight of the price criterion may not be less than 70%.

    The Procedure separately provides that disputes concerning decisions, actions or omissions of the contracting authority following the qualification selection or request for proposals shall be resolved by the courts. By contrast, challenges to tender documentation, actions or omissions of the contracting authority during open tenders shall be governed by the general rules applicable to procurement procedures conducted under the special wartime procurement regime.


    The Register of damage opens claims process for businesses and the state in relation to damaged infrastructure assets

    On 29 April 2026, the International Register of Damage for Ukraine (the "Register") opened the submission of compensation claims under the first categories concerning damage caused to businesses and the State of Ukraine by the aggression of the Russian Federation. This expands the Register’s work from recording individual losses to documenting systemic economic damage, including damage to infrastructure, loss of assets, loss of production capacity and complete loss of business.

    Claims may now be submitted under the following categories:

    B1.1, B1.2, C1.1 and C1.2 – damage to or destruction of critical and non-critical infrastructure;

    C3.1 – damage to, destruction or loss of assets, loss of income from such assets, loss of business, etc.

    Categories B1.1 and B1.2 are available to the State of Ukraine, state authorities, state institutions, local self-government bodies, territorial communities and other public entities. Categories C1.1, C1.2 and C3.1 are intended for legal entities, irrespective of their legal form and form of ownership, including state-owned and municipal enterprises.

    The opening of these categories creates, in particular for businesses, an opportunity to formally record the relevant losses and build an evidentiary basis for the further consideration of compensation claims.

    EBRD launches partial debt relief mechanism for businesses affected by war damage

    To support Ukrainian businesses and households affected by the consequences of the war, the European Bank for Reconstruction and Development (EBRD), in partnership with PrivatBank and Raiffeisen Bank Ukraine, has launched a pilot Enterprise Security Enhancement (ESE) mechanism. The mechanism will operate within the framework of the EBRD's Portfolio Risk Sharing (PRS) programmes and is designed to reduce the financial burden on borrowers whose financed assets have been damaged or destroyed as a result of the war.

    The mechanism will apply exclusively to sub-loans extended under the EBRD's PRS facilities for the financing of capital expenditure, including the construction, reconstruction, modernisation or acquisition of fixed assets. Where such assets have sustained direct war-related damage or have been destroyed as a result of hostilities, participating banks will be entitled to provide partial debt relief to eligible borrowers.

    Under the ESE mechanism:

    • the borrower submits a claim in respect of war-related damage to the financed asset;
    • the partner bank, together with the EBRD or its appointed consultants, verifies and confirms the reported damage;
    • following verification, the partner bank may grant a partial write-off of the borrower's outstanding indebtedness; and
    • the resulting credit losses incurred by the bank are reimbursed through donor-funded resources mobilised by the EBRD.

    The mechanism does not apply to working capital financing and may only be used where no alternative compensation is available, including under insurance arrangements or other compensation schemes. Specific safeguards and verification procedures have been introduced to prevent double compensation.

    The pilot programme is being implemented under the EBRD's PRS facilities with PrivatBank and Raiffeisen Bank Ukraine, with a total allocation of EUR 8 million. Following the pilot phase, the EBRD intends to expand the mechanism to additional Ukrainian financial institutions with the support of international donors and the European Commission under the Ukraine Investment Framework.

    III.  FOR INVESTORS

    Switzerland will allocate CHF 50 million for the third call for investment projects for Ukraine’s recovery

    On 30 April 2026, Ukraine and Switzerland signed a Memorandum launching the third call for investment projects aimed at Ukraine’s recovery in cooperation with the Swiss private sector.

    The total budget of grant support amounts to CHF 50 million. Unlike the previous stages, the new call will focus not on public infrastructure, but on supporting the private sector and market-based solutions. In Ukraine, the programme will be coordinated by the Ministry of Economy and UkraineInvest. Projects may cover construction, mechanical engineering, renewable energy, infrastructure, industry, agribusiness, IT and digitalisation.

    Following the first call, 12 projects worth CHF 93 million are already being implemented. A total of 37 applications were submitted for the second call, with an aggregate funding request of CHF 443 million, which exceeded the available budget by almost three times.

    The Government presents concession concept for the Chornomorsk ferry complex

    The Government continues preparations for the concession project relating to the Ferry Terminal at the Port of Chornomorsk. Following the presentation of the project concept in April 2026, the Ministry for Development announced a dedicated presentation for potential investors, scheduled to take place on 24 June 2026 in Gdańsk.

    The ferry complex is expected to become a major logistics hub and one of the key routes for Ukraine’s integration into the EU transport system. The facility has a potential transhipment capacity of up to 4.5 million tonnes of cargo per year and the capacity to handle up to 250,000 vehicles.

    The concession is planned to be granted for a term of 35 years. The private partner is expected to invest in the modernisation and development of the complex, while Ukraine will ensure transparent conditions for the implementation of the project.

    The project represents one of the examples of using public-private partnership mechanisms for the recovery and development of critical transport infrastructure, including ports that are important for exports, logistics and Ukraine’s integration with European transport corridors.

    IV.  PRIVATISATION

    The SPFU announces major privatisation auctions for 2026

    The State Property Fund of Ukraine has announced plans to launch privatisation auctions for several major state-owned and sanctions-related assets in 2026. Key assets include the Odesa Portside Plant, Ocean Plaza shopping and entertainment centre, Mykolaiv Alumina Plant and Demurinsky Mining and Processing Plant.

    For the real estate sector, the planned privatisation of Ocean Plaza is of particular importance to the real estate market, as it is one of the most attractive commercial assets in Kyiv. 

    The Government regulates the privatisation of leased property with inseparable improvements 

    On 6 June 2026, Resolution of the Cabinet of Ministers of Ukraine No. 632 dated 20 May 2026 will enter into force, amending the Procedure for Conducting Electronic Auctions for the Sale of Small-Scale Privatisation Objects. The amendments concern the privatisation of leased state-owned or municipal property to which the tenant has made inseparable improvements.

    The Resolution further clarifies the mechanism for exercising the tenant’s right to acquire such property through an auction. A tenant that has made inseparable improvements will be able to acquire the asset at the highest price offered during the auction, subject to compliance with statutory requirements. To do so, during the special stage of the auction, the tenant must agree to pay the sale price equal to the highest price bid submitted during the auction.

    The mechanism for compensating or setting off the value of inseparable improvements has also been regulated separately. If the purchaser is the tenant, such value will be set off against the purchase price. If another person becomes the purchaser, compensation to the tenant will be paid by the privatisation authority after the acceptance certificate for the asset has been signed.

    V.  HORECA 

    Revision of the threshold for classification as a collective accommodation establishment

    The Cabinet of Ministers of Ukraine has revised the criteria for determining collective accommodation establishments by reducing the minimum threshold for classification within this category from 30 to 10 bed places. This amendment reinstates the approach that applied prior to 2011 and expands the scope of accommodation facilities classified as collective accommodation establishments.

    The decision is intended to modernise the regulatory framework governing temporary accommodation facilities and to broaden the scope of facilities subject to the hotel regulatory framework, including with respect to registration, reporting obligations, taxation and the collection and remittance of the tourist tax.

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