REALWorld Law

Sale and purchase

Agreements with public bodies

Is it possible to enter into specific development agreements with relevant public authorities in this country in order to facilitate a project?



As from 31 December 2010 cooperation between the private and public sectors has been governed by the Law of Ukraine ‘On Public-Private Partnership’. A PPP is usually involved in the construction of highways, roads, railways, runways, bridges, tunnels, metros, river and sea-ports and associated infrastructure. PPP projects became more popular in the course of the preparations for the Euro 2012 football championship. Such PPP projects were based on the Law of Ukraine ‘On the Organization and Implementation of the Final of the Euro 2012 Football Championship’, dated 19 April 2007.

On 24 May 2016, the Law of Ukraine ‘On Amendments to Certain Laws of Ukraine regarding Lifting of the Regulatory Barriers for Development of Public-Private Partnership and Stimulation of Investments in Ukraine’ entered into force. The aforesaid law broadened the list of privileges and guarantees for private partners (eg now the private partners can acquire into their ownership the objects created by them in course of PPP; the objects of PPP can also be in joint ownership of the public and private partners; disputes arising out of agreements on PPP concluded with participation of non-residents can be resolved by an international arbitral tribunal; in case of early termination of an agreement on PPP through fault of the public partner, he is obliged to compensate the private partner investments non-reimbursed within the term of such agreement and damages occurred due to early termination of the agreement on PPP).

On 3 October 2019 the Law of Ukraine ‘On Concession’ (Law 155-IX) entered into force. According to Law 155-IX, private investors under the right of concession can benefit from the public-owned property, including the property prohibited to privatize: roads, railways, seaport and airdrome facilities etc. After investments in the object of concession are made investors under the concession agreement can receive revenue and other benefits from utilizing this object of concession for less than 50 years.

On 17 December 2020, the Verkhovna Rada of Ukraine adopted the Law of Ukraine On state support of investment projects with significant investments in Ukraine. According to this Law, investors who intend to invest not less than EUR20 million in Ukraine are able to execute a special investment agreement with the Cabinet of Ministers of Ukraine. Please note that investment projects shall concern construction, modernization, technical and/or technological re-equipment of investment objects in the particular spheres (processing industry, transport industry, post industry etc.) and meet other requirements provided for by the Law.

According to the respective Law, an investor may be entitled to obtain lease title to land plot for construction of investment object under the simplified procedure. The goverment of Ukraine guarantees to support the investor on each step of an investment project under the special investment agreement. In practice it is also possible to enter into investment agreements, joint venture agreements, etc with public authorities.