Business support in times of war
Author: Gennady Silvanovich, lawyer of Dynasty Law & Investment
During martial law, it is necessary to form a strong economic rear for our defenders, in particular to support large, medium and small businesses and save jobs in Ukraine. It is now very important that most businesses, organizations and companies can continue to work where security allows.
In view of this, the Verkhovna Rada of Ukraine adopted the Law of Ukraine №2181-IX of 01.04.2022, which stipulates that during martial law the Cabinet of Ministers of Ukraine may establish different rules for the transfer of property for rent from those provided by the Law of Ukraine “On Lease of State and Municipal Property “, In particular regarding:
- terms of approval of inclusion of the leased object in the List of 1 or 2 types;
- start-up rent (if the information on the residual book value of the leased property is less than 10% of the original book value of the leased property);
- terms of the auction and approval of the protocol of the auction results;
- opportunities to sign documents with a qualified electronic signature;
- extension of lease agreements, in particular regarding the introduction of the possibility of automatic renewal of lease agreements, the validity of which expired during martial law, before the termination / cancellation of martial law or for 4 months after its termination / cancellation;
- termination of lease agreements by tenants;
- the possibility of applying preferential rent for up to 6 months for tenants participating in the auction of state property to move production located in the territories defined by the Cabinet of Ministers of Ukraine.
It should be noted that in order to avoid abuses in concluding long-term lease agreements, legislators stipulate that the term of lease agreements concluded during martial law may not exceed one year after the termination / termination of martial law.
Thus, the restoration and simplification of the lease procedure will open new opportunities for Ukrainian business, in this regard, businesses, companies and organizations will be able to move to safe areas and continue their work.