Fast takeaway for investors & PPP advisors
| What changed? | Why it matters for business | Key details |
|---|---|---|
| Law № 4196-IX (in force 28 Aug 2025) introduces a new real-property right – usufruct – alongside a clean-up of old “economic / operational management” models. | Local councils and ministries can now grant free possession & use of state/municipal assets to non-profit entities and public agencies. For private-sector partners this clarifies asset status inside PPP, concession or lease structures. | • Covers all movable & immovable assets except land • Term: 5 yrs or indefinite • Usufructuary may earn revenues but may not sell, mortgage or repurpose the asset (leasing permitted under separate law) |
| One-stop governance | Cuts red tape: rights are conferred directly by the “authorised body” of the state or local community – no court order required. | Aligns Ukraine’s Civil Code with EU-style property norms, smoothing accession processes. |
Practical impact
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Pipeline of social-infrastructure PPPs – hospitals, schools, R&D hubs can now be equipped via usufruct without ownership transfer.
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Clearer due-diligence for investors – eliminates legacy “dual titles,” reduces legal risk in M&A where state assets sit on balance sheets.
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Exit path for outdated ‘economic management’ rights – five-year horizon lets ministries migrate to the new regime gradually.
Next steps
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Ministries & municipalities must inventory assets and issue by-laws on usufruct allocation.
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Private operators eyeing long-term concessions should track secondary regulations on sub-leasing and revenue-sharing.
