LEGAL ALERT: New procedure of Lease of State and Municipal Property


On June 17, 2020, the Procedure of Lease of State and Municipal Property (“Procedure”*) has entered into force.

Key things to know about the new Procedure:

The lease execution will be carried out through one of the following procedures:

  • The general (main) procedure: all premises must be leased based on an auction (“Auction”), except for the premises that are directly covered by the out-of-tender procedure; and
  • Out-of-tender procedure: lease of premises by the state/municipal authorities and entities, educational and scientific institutions, diplomatic offices, museums, religious organizations (and other similar entities) may be executed without an auction (“Out-Of-Tender Lease”); sub-lease of such premises is prohibited

Auctions (including bidding) and Out-of-Tender Lease will be carried out online through an online platform “Prodazhi” (“Prozorro”)

Prozorro will be publicly available and will contain the following information:

  • list of premises which are already leased or are offered for lease
  • prices, main terms and conditions of the already executed lease agreements
  • information on Auctions and Out-of-Tender Leases, including all communications and document circulation (i.e. applications, resolutions, etc.), bidding, decisions of state authorities/lessors, etc.

Although the Procedure is already in force, Prozorro will be fully operable for Auctions/Out-of-Tender Leases only from October 1, 2020. Until then, all leases will be executed as before:

  • information on Auctions and premises which are offered for a lease will be published in the official media and websites of lessors; and
  • applications (including for Out-of-Tender Leases) and other documents will be submitted in paper or electronically directly to lessors/asset holders.

* adopted by the Regulation of the Cabinet of Ministers of Ukraine “On some Issues of Lease of State and Municipal Property” No. 483 dated June 3, 2020

Author of the Publication

Dr. Oleksiy Feliv, LL.M.