The Legal 500

The Cabinet of Ministers of Ukraine has adopted Resolution No. 703 “On approving the Procedure for state registration of rights to real estate and their encumbrances and the Procedure on issuance of extracts from the State registrar of property rights to real estate” dated 22 June 2011 (the “Resolution”), which was prepared pursuant to Article 15 of Law of Ukraine No. 1952-IV “On State Registration of Property Rights to Real Estate and Their Encumbrances”. Below you will find a short overview of main changes with respect to registration of rights and encumbrances to real estate.

The construction law reform initiated by the new Ukrainian government is expected to boost the investment attractiveness of the Ukrainian real estate development market and move Ukraine up in the ease of doing business ratings.

On 14 January 2009, the Law of Ukraine On the Prevention of the Impact of the Global Financial Crisis on the Development of the Construction Industry and Residential Construction (the “Law”) entered into force. The Law aims at the support of the Ukrainian construction industry, and primarily residential construction, during the recession of the global economy, as well as the creation of more favorable conditions for developers’ activities on the Ukrainian real estate market.

On 27 January 2009, the Ministry of Regional Development and Construction of Ukraine adopted new “Licensing Terms for the Performance of Business Activities in the Sphere of Construction Related to the Creation of Architectural Objects” (the “Licensing Terms”). As required by Ukrainian law, the Licensing Terms were registered by the Ministry of Justice of Ukraine on 11 March 2009, and entered into force on 22 March 2009.

Government allows local authorities to fix price caps for the lease of, and for services provided at retail premises

In order to implement changes to the Ukrainian land legislation intended to streamline the land rights registration process, the Ukrainian Parliament passed the Law of Ukraine On Amendments to Certain Ukrainian Legislation Related to Documents Evidencing Land Rights and the Procedure for the Division and Consolidation of Land Plots on 5 March 2009, which will take effect on 1 May 2009

In the opinion of Timur Bondaryev, the Senior Partner of Arzinger & Partners, there are a number of obstacles for foreign investors working in real estate and they are connected with the imperfections of the Ukrainian legal system.