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Leasing State-owned and Municipal Property in Ukraine: New Improvements

Leasing State-owned and Municipal Property in Ukraine: New Improvements

Ukraine
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On February 1, 2020, the new Law on Lease of State-Owned and Municipal Property (the “Law”) came into force. The Law substitutes the old one that has been in use since 1992 and launches a fundamentally new mechanism for the lease of state/municipal property which aim to:

  • simplify the leasing procedure
  • minimize the potential corruption risks

In particular, the Law introduces the following basic novelties in the leasing procedure:

  • The list of all premises which potentially may be leased, as well as information about the already leased property, relevant prices, main terms and conditions of lease agreements, are now public and will also be available online on the “Prozorro” online platform.
  • The Law establishes 2 different procedures for the lease execution:

The general (main) procedure: all premises must be leased based on an auction, except for the premises that are directly covered by the out-of-tender procedure
Out-of tender procedure: lease of premises by state/municipal authorities and entities, educational and scientific institutions, diplomatic offices, museums, religious organizations (and other similar entities) may be done without an auction; sub-lease of such premises is prohibited

  • All auctions, as well as all communications and document circulation during tender or out-of tender procedures (i.e. applications, resolutions, etc.), will be conducted online through the “Prozorro” online platform;
  • Subject to certain exceptions (i.e. out-of tender procedure, etc.), the lease extension will also be made through an auction;
  • The starting rental price for an auction in most cases will be calculated based on a balance value (as opposed to an independent evaluation);
  • Due to the simplification of the leasing procedure, the total time for the lease execution is expected to reduce by half.

By Gennadii Roschepii, Counsel, and Oleksiy Feliv, Managing Partner, Integrites

Integrites at a Glance

Founded in 2005, INTEGRITES is a full-service law firm with head office in Ukraine and representative offices in Germany and the UK.

INTEGRITES is particularly sought after for its cross-border work – sophisticated deals and transactions, complex dispute resolution, and projects which require in-depth industrial expertise, as well as for comprehensive advice on current business operations.

In 19 years in the market the firm has served 1500+ clients from around the globe, including Fortune 500 companies, international financial institutions, and recognized leaders in various industries: from real estate and construction, infrastructure, and agriculture to manufacturing, pharmaceuticals, and retail.

Climate Change Task Force within the firm provides clients with comprehensive advice on projects targeted at the sustainable development of their business and the country in the context of energy transition and green technologies.

The expertise of the team has consistently received recognition globally and domestically

Managing partner of the firm, Dr. Oleksiy Feliv, received The Lawyer European Awards 2023 as top-3 European managing partner of the year. Named as Commended, Dr. Feliv became the only Ukrainian representative selected for this nomination.

In 2023-2024 Yurydychna Gazeta (Ukraine) named INTEGRITES in top-5 firms with the widest impact on the development of the Ukrainian legal services market, with Dr. Oleksiy Feliv on top of the list of the most effective law firm leaders in the country.

INTEGRITES was shortlisted for Law Firm of the Year: Ukraine award by Chambers Europe and The Lawyer in 2021 and 2022.

Since 2020, INTEGRITES has been listed by GAR100 as one of the world’s best law firms in arbitration.

Firm's website: www.integrites.com