Prozorro.Sale

On May 27, the Cabinet of Ministers approved Decree No. 634, prepared by the Ministry of Economy and the State Property Fund, which regulates the rules for renting communal and state property in wartime (hereinafter Decree). It defines a simplified rental procedure, and also provides for preferential terms and a reduction in fees up to 100% for tenants in different regions of the country. If a person has been paying rent since the beginning of a full-scale war in Ukraine, these funds will be credited to the tenant after the expiration of the benefits.

We talk about the introduced discounts and benefits, and innovations about the anonymity of tenants of state and communal property during martial law.

What Discounts Does the Decree Introduce?

The adopted procedure covers the entire period from February 24 and applies to persons whose lease agreements for state or communal property were valid as of February 24, 2022, or were concluded after this date based on the results of Prozorro.Sale auctions that took place before February 24, 2022, inclusive:

1. Persons do not pay rent during martial law and 3 more months after its end, but not less than until the end of 2022, if:

- - they were called up or accepted into military service;
  - the property is located in territories where access to unified and state registers, for which the Ministry of Justice is responsible, is currently terminated.

2. Persons do not pay rent during martial law, but not longer than until 09/30/22 if they rent property located:

- - in the areas affected by hostilities (except for the territories indicated in the previous paragraph): Zaporizhia, Mykolaiv, Sumy, Kharkiv, Chernihiv, Kyiv regions (including Kyiv);
  - in cultural or educational institutions, if the rental object was rented out on an hourly basis.

3. Persons do not pay rent until May 30, 2022, if they rent property in territories where there was a threat of hostilities (Kirovograd, Dnipropetrovsk, Zhytomyr, Odesa regions).

4. Persons renting state property in other regions, as well as persons listed in paragraphs 2 and 3 after the expiration of the specified period, pay only 50% of the rent during the period of martial law and 3 more months after its end.

5. Persons renting unified property complexes in other regions pay 75% of the rent during the period of martial law and three more months after its end.

Benefits for Businesses that Relocate

Benefits are provided for businesses that move to safer regions of the country from front-line territories. Such enterprises during the first 6 months will pay rent for 1 hryvnia for 1 sq. m, regardless of which area they moved to.

To receive government assistance with relocation, apply using the "Applying for a business relocation" guide.

If you want to sell or rent property to a business relocating from dangerous regions, apply using the "Creating and publishing relocation objects" instructions.

Other Benefits Introduced by the Decree

The text of the Decree also defines the following conditions on the territory of Ukraine:

1. Lease agreements for state property that expire during the war are automatically extended for the duration of martial law and an additional 4 months from the date of its expiration, except for the cases described in the Decree. At the same time, at the request of the tenant, the lease may be terminated ahead of schedule.
2. The right is given to local self-government bodies, additionally at their discretion, to approve the decision on benefits and discounts under lease agreements for communal property.
3. Tenants are expected to have the right to return their security deposits.
4. Tender lease documents may be signed by QES/AES, provided that the winner does not require such documents to be concluded and signed in paper form.

Regarding the Anonymity of Tenants of State and Communal Property

Additionally, the Decree introduces several features for displaying documents and publishing information about participants and winners of Prozorro.Sale rental auctions:

1. The data about each participant is anonymous (closed) and is not disclosed after the end of the electronic auction.
2. Data about the winner and bidders in the auction results protocol, which is automatically generated by Prozorro.Sale system are anonymous for everyone except for the operators of electronic platforms through which applications for participation were submitted, and the landlord who has access to such information.
3. The protocol on the results of the auction is formed and then signed by the winner of the auction and the site operator by the Lease Procedure - nothing changes here.
4. The lease agreement and the act of acceptance and transfer uploaded by the lessor through the personal account on the site are closed and are not displayed in the Prozorro.Sale system on the sites.

These changes will take effect as soon as the appropriate technical possibility appears, which the administrator will announce on his website.

Please note that the documents will become public following the suspension or lifting of martial law from the moment such a technical capability becomes available in Prozorro.Sale.

You can find out more about all the changes on the CMU website here.

Keep doing business and support the economic front! Together to victory!