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With adoption of the new version of the Law of Ukraine “On Leasing of State and Municipal Property”, signed by the President on December 24, 2019, a brand new mechanism for leasing such property was introduced. The new lease terms are, in our viewpoint, more transparent and competitive. The law will enter into force on February 1, 2020.
Thus, according to the provisions of the Law in Ukraine, the sale of lease rights to state and communal property (except for statutory exceptions) will be made by interested parties through an electronic auction system that will have open public access and contain all necessary information about leases.
The law regulates the mechanism of participation in the electronic auction, terms and stages.
The rules of conducting an auction are almost indistinguishable from the rules of the existing electronic ones. The auctioning is performed by the operator of the trading platform for the stipulated remuneration, the order of submission of bidders for participation in the auction is established by the government, sites, for example, “ETC ProZorro. Sales. Government Auctions”, which create a convenient environment for users.
The law also separately regulated the acquisition of the right of lease without an auction procedure, fixing the procedure, the grounds for the lease and the subjects of this procedure. The submission and publication of information, the publication of leases concluded without an auction to be made, will be effected on the official landlords’ websites, as well as in the print media.
The new Law introduced corresponding amendments to the provisions of the Economic and Civil Codes, other normative acts concerning leasing of state and municipal property.
-Tetyana Trikoza, attorney at law Dynasty Law Firm.