Lease agreement with European Agro Investment Ukraine LLC that is the largest debtor in the State Property Fund system, was terminated by the landlord. The reason - one and a half years of rent arrears in the amount of over UAH 39 million

On March 23, 2021, the Regional office (RO) of the State Property Fund of Ukraine in Odesa and Mykolaiv oblasts served European Agro Investment Ukraine LLC a notice of termination of the lease agreement for buildings, crane tracks, fence and other real estate with a total area of 113,106.5 sq. m. in the Chernomorsk Sea Port.

This lease agreement is terminated from March 24, 2021. From the moment of entering information on its termination under number 23291 into the Register of decisions and other documents on the basic of which the lease is terminated in accordance with the Order of the State Property Fund of Ukraine dated 22.12.2020 No. 2049 “On approval of the Instructions for the implementation of measures related to the termination of lease agreements and the return from lease of immovable / other separate individually defined property belonging to state ownership”.*

Balance holder of the lease property – State Enterprise “Sea Port “Chernomorsk”.

A tenant has not been paying a rent for assets in the port since August 2019, as a result of which as of March 18, 2021, the arrears of rent under the agreement is UAH 39,048,218.02.

The lease agreement is terminated in accordance with Article 782 of the Civil Code of Ukraine, which provides for the lessor's right to terminate the lease in case of delay in payment under the lease for 3 consecutive months.

The RO of the State Property Fund of Ukraine in Odesa and Mykolaiv oblasts also appealed to the tenant with a requirement to transfer the property rented by him to property’s balance holder within 3 working days, as well as to sign an act of acceptance and transfer of property.

As a reminder, the State Property Fund has changed its approaches to interaction with tenants of state property, whose rent arrears are 3 or more months in a row under contracts concluded prior to the entry into force of new model lease contracts (approved by the Cabinet of Ministers of Ukraine on August 12, 2020) From now on, the Fund will not go to court, but will take measures to unilaterally terminate contracts, using the norm of Article 782 of the Civil Code of Ukraine. To find out more about this, follow the link to the Fund news https://bit.ly/3lKhPCC.

FYI

The lease agreement with European Agro Investment Ukraine LLC was concluded on June 13, 2018.

At this time, European Agro Investment Ukraine LLCis the largest debtor in the lease of state property.A complete list of the largest debtors on the link https://bit.ly/3vAa3zP.

*Source:https://orenda.gov.ua/orendni-reiestry/reiestr-rishen-i-inshykh-dokumentiv-na-pidstavi-iakykh-prypyniaiutsia-orendni-pravovidnosyny/