A new Regulation on lease of state and communal property entered into force
The Regulation on lease of state and communal property approved by the Cabinet of Ministers of Ukraine of 03.06.2020, entered into force on June 16, 2020. Relevant Resolution of the Government is available on: (Resolution of the Cabinet of Ministers of Ukaine №483 “Some issues on the state and communal property lease”).
From the beginning, approval of the new Regulation was one of the necessary conditions for lease launching through e-auctions, in accordance with the new Law on leasing (the Law entered into force on February 1, 2020).
The Regulation details provision of the Law on leasing and establishes new lease standards for all current and potential leaseholders.
The First Deputy of the Head of the State Property Fund of Ukraine Leonid Antonienko who is co-author of the new Law on leasing, proposes review of the five most important changes established by the Regulation:
It is provided new stimulations for leaseholders to invest in repairing and lease objects improving. Continuing of the acting lease contracts through auction will be less painful for leaseholders that implemented such improvements (for more information, please, follow the link by link);
Sublease turns from the instrument that denies the State and society appropriate income from assets into the instrument of stimulation investments attraction in repairing and lease objects improvements (for more information, please, follow the link by link);
Lease mechanism without conducting auction becomes more predictable and fair. At the same time, schemes that distorted competition and gave unjustified advantages for certain businessmen, pseudo-public organizations and also provided corrupt practices for officials are closing (for more information, please, follow the link by link);
The database of the property that can be leased through e-auctions expands due to the additional stimulations establishing for overcoming the practice of property lease through so-called quasi-lease contracts or even without contracts. It is conducted implementation of the extensive inventory and publishing of all civil law contracts being the basis for the state and communal property using. Certain categories of quasi-lease contracts are subject to termination and transformation into lease through e-auctions, including transfer of rights on packing platforms exploitation contracts, which are used widely in certain cities with violation of the competitive access to these assets principles (for more information, please, follow the link by link);
It is restricted possibilities for abuse of amendments to lease contracts through manipulations with purpose of use, lease terms prolongation and leased area increase. At the same time, it is detailed the procedure of such amendments in cases when it is really necessary (for more information, please, follow the link by link).