COMPENSATION FOR DAMAGED AND DESTROYED REAL PROPERTY

On 23.02.2023 Ukrainian Parliament adopted the Law of Ukraine On Compensation for Damage and Destruction of Certain Categories of Immovable Property as a Result of Hostilities, Acts of Terrorism, Sabotage Caused by the Armed Aggression of the Russian Federation Against Ukraine, and the State Register of Property Damaged and Destroyed as a Result of Hostilities, Acts of Terrorism, Sabotage Caused by the Armed Aggression of the Russian Federation Against Ukraine (hereinafter - the Law) which will come into force on 22.05.2023.

Under the Law the recipients of compensation are:

- citizens of Ukraine.

- maintainers of multi-apartment buildings.

The issue of providing compensation will be considered by a special commission formed by the executive body of the village, settlement, city, district council in the city, and military or military-civilian administration of the settlement.

The application for compensation is to be submitted by the recipient during the period of martial law and within one year from the date of its termination/cancellation in the territory where the destroyed object is (was) located.

Compensation is provided:

1) regarding the destroyed real property:

- provision of funds to finance the construction of a manor house, garden, or country house.

- financing of the purchase or investment/financing of the construction of an apartment, other residential premises, a manor house, garden, or country house.

2) regarding the damaged real property:

- performance of works related to construction, with the aim of its restoration and/or provision of construction products for the performance of such works.

In addition, the Law has supplemented Chapter 5 of the Final Provisions of the Law of Ukraine On Regulation of Town Planning Activities, paragraph 9-9, which stipulates that the developer of construction (except for new construction) related to the restoration of damaged real property that is not a communal property of the relevant territorial communities, may be the executive body of the village, settlement, city council, except in cases where such construction is related to:

1) the change in the functional purpose of real property or its constituent parts, which are independent real property (apartment, garage box, parking space, etc.);

2) change in the number of floors of the building;

3) the formation of new or the disappearance of existing building components, and structures that are independent objects of real estate (apartment, garage box, parking space, etc.).

In this case:

a) town-planning conditions and restrictions, the right for developments works, change of such right and commissioning may be arranged without:

- assigned cadastral number of the land plot;

- registration of title to the land plot or building.

Should you have any questions with respect to above or require any additional information, please do not hesitate to contact Mr. Vladyslav Kysil  (v.kysil@kpdconsulting.com.ua) or Mr. Mykhailo Semka (m.semka@kpdconsulting.com.ua). We will be pleased to assist You.

The information contained in this overview is not intended to provide legal advice and should not be relied on or treated as a substitute for specific advice concerning individual situations.