<\/p>\n
On August 12, 2020, Ukrainian Government adopted a resolution (hereinafter referred to as the “Resolution<\/strong>“), which approved the forms of new template agreements for the lease of the state owned property. In the nearest future, we expect the publication of the final official text of the Resolution on the Government website.<\/p>\n In fact, with the adoption of the Resolution, two new templates of contracts were approved:<\/p>\n According to the State Property Fund of Ukraine, the main changes introduced by the Resolution to the templates of contracts are:<\/p>\n – The emergence of a third party \u2013 a person on whose balance sheet is the property. Now the asset holder will be able to protect the property from illegal actions of the tenant, or legally demand to use the property correctly.<\/p>\n – Definition of concepts such as advance and security payments paid by the lessee to the lessor and the asset holder. Previously, there were no such provisions, and they are borrowed from the commercial leases of privately owned property.<\/p>\n – Granting the tenant with the right to terminate the contract unilaterally in the event the conditions of the real estate do not allow to use of the leased object for its intended purpose and\/or start the repair works. This situation partially corresponds with the provision of paragraph 4 of Part 2 of Art. 768 of the Civil Code of Ukraine. However, this provision should be further tested in practice. The termination of such an agreement is most likely to take place exclusively through the courts, therefore, the relevant practice should be further formed.<\/p>\n In general, the adoption of new templates of agreements and bringing it into greater conformity with both new legislative requirements and market practice is an extremely positive development.<\/p>\n\n