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On 19 June 2025, the Verkhovna Rada of Ukraine enacted Draft Law № 7508 – a major revision to the country`s Public-Private Partnership (PPP) framework. This reform is aimed at accelerating private investment in post-conflict reconstruction and the development of strategic sectors of the economy, including the defense industry.
What has changed?
- Special regime for recovery projects: A simplified procedure for preparing PPP projects will apply to the reconstruction of war-damaged infrastructure in key sectors such as healthcare, transport, energy, and education. The regime will be determined by the Government of Ukraine and remain in effect during martial law and for 7 years thereafter.
- Defense sector inclusion: The new law enables, for the first time, joint PPP projects between state and private defense companies. This legal breakthrough allows private investment in Ukraine’s military-industrial sector to support modernization and innovation. It also expands PPP opportunities across reconstruction, infrastructure, and broader economic development.
- Digitalization of PPP procedures: The new law introduces a two-tier electronic trading system for PPP projects. The entire PPP process – from publishing announcements to disclosing signed agreements – will be conducted online, ensuring transparency and alignment with EU practices.
- Enhanced investor protections: The new law introduces strengthened guarantees for private partners and creditors, including protection of rights, contractual stability, and non-discriminatory treatment throughout the lifecycle of PPP projects. Legislative changes will not affect the terms of already signed agreements.
- Expanded list of public partners: Under the new law, state-owned companies such as Ukrzaliznytsia and Ukrenergo can now initiate PPP projects directly, without excessive bureaucracy. This will enable them to attract private investment for the restoration of critical infrastructure, including train stations and power grids.
- Streamlined process for smaller PPP initiatives: For projects valued under € 38 million that involve only private financing, design, and construction of municipal facilities, the updated law allows decisions to proceed based solely on a concept note – eliminating the need for a full feasibility study. This fast-track approach will enable local communities to swiftly engage private partners in building essential infrastructure, from local roads to social facilities.
What this means for businesses
The updated PPP legislation creates a significantly more accessible and investor-friendly environment for businesses looking to participate in Ukraine`s recovery and long-term development. With simplified entry points for smaller projects, digitalized procedures, and expanded rights for state-owned enterprises to initiate partnerships, businesses across different sectors – from infrastructure and utilities to defense and social services – can now engage in PPPs with greater speed and certainty. Legal guarantees of contractual stability and non-discriminatory treatment further enhance the attractiveness of such ventures.
At Koziakov and Partners, we are ready to support businesses at every stage of their PPP journey – from legal due diligence and regulatory compliance to strategic structuring and risk mitigation. With deep experience in public infrastructure and investment projects, we are committed to helping our clients unlock the full potential of the new PPP opportunities in Ukraine.