EBA asks the President to veto the draft law on the protection of the interests of land share owners due to unfinished provisions regarding the water area of seaports

10/ 06/ 2024

Draft law No. 11150 aims to regulate the protection of land share (paii) owners rights, amend land relations regulations under wartime conditions, and align land-related legislation with the Law of Ukraine On Administrative Procedure. On May 22, the Parliament of Ukraine adopted this law in its second reading, after which it was sent to the President of Ukraine for signature. Experts of the European Business Association generally support the adoption of this draft law, as it should simplify and improve the regulation of land relations. However, during the preparation of this draft law for the second reading in the Verkhovna Rada, additional provisions were introduced regarding the regulation of the legal status of lands under the waters of seaports, particularly in terms of delineating these lands between communal and state ownership and determining the bodies authorized to manage such lands. The vast majority of additional provisions were also supported by the business community. However, some of the proposals related to lands under the waters of seaports caused very serious concerns and remarks among the ЕВАs members. This concerns only those provisions of the draft law that relate to the legal status and procedure for allocating lands under the waters of seaports, which are partially located within and partially outside the territories of the respective territorial communities (including outside any administrative-territorial units). In particular, the draft law assigned such lands to the communal ownership of territorial communities, in whose territory they are partially located, and granted local self-government bodies the right to manage such lands. According to the ЕВАs experts, this provision creates legal uncertainty regarding the procedure for allocating such lands. This situation will lead to the fact that the mentioned seaports and business entities operating in them will be placed in unequal and non-competitive conditions for development and investment compared to those seaports whose waters are fully covered by the boundaries of the respective territorial communities, which is unacceptable. The European Business Association appealed to the President of Ukraine with a proposal to veto this law and return it to the Parliament for revision, but exclusively in terms of those provisions that relate to the legal status and procedure for allocating lands under the waters of seaports that are fully or partially located outside administrative-territorial units. We hope for attention to our appeal!

Draft law No. 11150 aims to regulate the protection of land share (paii) owners’ rights, amend land relations regulations under wartime conditions, and align land-related legislation with the Law of Ukraine “On Administrative Procedure.” On May 22, the Parliament of Ukraine adopted this law in its second reading, after which it was sent to the President of Ukraine for signature.

Experts of the European Business Association generally support the adoption of this draft law, as it should simplify and improve the regulation of land relations.

However, during the preparation of this draft law for the second reading in the Verkhovna Rada, additional provisions were introduced regarding the regulation of the legal status of lands under the waters of seaports, particularly in terms of delineating these lands between communal and state ownership and determining the bodies authorized to manage such lands.

The vast majority of additional provisions were also supported by the business community. However, some of the proposals related to lands under the waters of seaports caused very serious concerns and remarks among the ЕВА’s members.

This concerns only those provisions of the draft law that relate to the legal status and procedure for allocating lands under the waters of seaports, which are partially located within and partially outside the territories of the respective territorial communities (including outside any administrative-territorial units). In particular, the draft law assigned such lands to the communal ownership of territorial communities, in whose territory they are partially located, and granted local self-government bodies the right to manage such lands.

According to the ЕВА’s experts, this provision creates legal uncertainty regarding the procedure for allocating such lands. This situation will lead to the fact that the mentioned seaports and business entities operating in them will be placed in unequal and non-competitive conditions for development and investment compared to those seaports whose waters are fully covered by the boundaries of the respective territorial communities, which is unacceptable.

The European Business Association appealed to the President of Ukraine with a proposal to veto this law and return it to the Parliament for revision, but exclusively in terms of those provisions that relate to the legal status and procedure for allocating lands under the waters of seaports that are fully or partially located outside administrative-territorial units. We hope for attention to our appeal!