On 13 April 2020, the Parliament of Ukraine adopted the law “On Amending the Law of Ukraine “On the State Budget of Ukraine for 2020” (the “Law”). The Law became effective on 18 April 2020. In addition to changes to the state budget, the Law has also amended provisions of the Civil Code of Ukraine on the lease of property.
The Law revised the recently introduced “rent relief” rule. According to the Law, for the duration of the restrictive quarantine measures introduced by the Cabinet of Ministers to prevent the spread of COVID-19 in Ukraine, the circumstances beyond the tenant’s control that under the Civil Code of Ukraine may be considered the grounds for reduction of/exemption from rent, were clarified.
Such circumstances shall now include the measures introduced by the government that:
The changes introduced by the Law may be summarised as follows:
To sum up, the Law creates a basis for resolving issues concerning lease of property during the quarantine. However, the parties in each case shall analyse the contract in detail, prepare reasonable arguments, as well as necessary documents and facts in support of their position.