UKRAINE Law and Practice Contributed by: Timur Bondaryev, Maryna Sharapa, Andrii Pidhainyi and Olena Yurets, Arzinger
1. General 1.1 Main Sources of Law The main and only source of real estate law in Ukraine are the relevant statutes. 1.2 Main Market Trends and Deals In 2022, the real estate market suffered sig - nificant losses due to the full-scale invasion of Ukraine by Russia. Businesses were forced to abandon the implementation of new projects, given the constant threat of rocket attacks. According to public information, in 2023 Ukrain - ians purchased 1.7 times more property than in 2022, though still less than in 2021. However, despite the difficult situation, many Ukrainian developers have continued their activ - ities. The privatisation and leasing of State-owned properties showed successful results despite the situation in the country. In the first three quarters of 2023: • more than 300 privatisation auctions were held, raising UAH2.7 billion for the State budget; and • 1,229 lease contracts of State property were concluded, which involved UAH572.15 million for the State budget. Of the significant transactions in the real estate sector, mention should be made of the privati - sation of the “Ust-Danube” seaport, as this was the first case of privatisation of port assets in Ukraine. Ukrainian authorities have actively worked with international financial organisations and foreign
governments throughout the past year in order to contribute to post-war reconstruction. COVID-19 has had no further real impact on the real estate market. Rising inflation and increases in interest rates have resulted from the escala - tion of the Russian invasion of Ukraine. Also in the Ukrainian market, real estate sell - ers have, for several years now, discussed the possibility of structuring transactions using new tools such as blockchain and defi, though this is mostly just a marketing ploy and not a com - mon practice. 1.3 Proposals for Reform Construction Reform An ongoing reform of the construction sector began in 2021, including replacement the licens - ing system with the certification of individuals performing construction works (ie, construction supervisors) to enable personal responsibility for construction. A new construction authority, the State Inspec - tion for Architecture and Urban Planning of Ukraine (instead of the State Architectural and Construction Inspection) has been established. The introduction of the new body was aimed at restarting State-business relations in the con - struction sphere, by adopting more transparent procedures and introducing an electronic con - struction system aimed at significantly reducing the level of corruption. Past years have also seen an even greater introduction of digitalisation in the construction industry and a reduction in paperwork. In par - ticular, almost all services in construction (the issuance of town planning conditions, permits on construction, commissioning, etc) are provid - ed through the Unified State Electronic System
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