Updated State Property Lease Rules and Payment Indexation Conditions

December 17, 2025 The Cabinet of Ministers of Ukraine adopted Resolution No. 1671 regarding the update of state property lease rules, amendments to model contracts, and the update of the rent calculation methodology.

The innovations in lease regulation

The main innovations in lease regulation include the following provisions:

  • For all lease contracts concluded based on the results of electronic auctions, the annual indexation of rent is replaced by mandatory monthly indexation;
  • Tenants are granted the legal right to officially demand the transfer of property from the balance holder or to completely withdraw from the contract in case of failure to meet transfer deadlines;
  • A mandatory security deposit is introduced, the amount of which must be three months’ rent to guarantee the financial stability of the contract;
  • Specific legal cases are defined in which the act of returning leased property might not be signed by the parties after the expiration of the lease term;
  • The procedure for the official exchange of notifications between the parties is regulated, and a clear moment of their legal receipt is established;
  • A mechanism is provided for the actions of the parties in case another person acquires the rights and obligations of the lessor or the balance holder changes;
  • A clear procedure is established for the restoration of a unified property complex by the tenant using accrued depreciation charges.

The changes are aimed at increasing the legal certainty of lease relations, reducing operational risks for business, and ensuring stable and predictable conditions for the efficient use of state property.

We will closely monitor further developments in this area and will report on them in future Legal News.