Simplified procedure for renting property for Ukrainian defense enterprises established

Publication date: 01.06.2022

On May 31, the Verkhovna Rada of Ukraine adopted a Draft Law No. 8307 in the 2 reading by 238 votes.

This draft law, initiated by Ukroboronprom State Concern, is aimed to enable the enterprises of the State Concern to lease sites and equipment during martial law in order to house their operations to meet the needs of security and defense forces in a simplified procedure.

Such property will be leased by Ukroboronprom’s enterprises without competitive procedures. The rent fee shall be defined by the agreement of the parties and agreed by the authorized entity, but may not be less than 1 percent of the book value of a rented facility.

At that subleasing of such property shall be banned. The draft law also defines the list of entities that cannot be tenants: in particular, persons associated with the aggressor state.

Ukroboronprom shall be obliged to inform Ukraine’s Cabinet of Ministers and the State Property Fund of Ukraine  about lease agreements concluded in accordance with the draft law on a monthly basis, as well as to publish information on lease agreements concluded in accordance with this procedure within one month after suspension or termination of martial law.