On 2 December 2016, Regulation of the Cabinet of Ministers of Ukraine (“CMU”) No. 843 “On Amendments

to the Model Land Lease Agreement” (the "Regulation") became effective. The Regulation brings the model

land lease agreement (the "Model Agreement") in line with the Law of Ukraine No. 161-XIV “On Land

Lease” dated 6 October 1998 (the "Law").

Whilst the changes to the Law were introduced more than a year ago, they have only recently been are

reflected in the Model Agreement. The Regulation removes, for the most part, the inconsistencies in the

Model Agreement with the provisions of Law. Even though the application of the Model Agreement is not

expressly required by Law, it is still widely used by the relevant land authorities disposing state and

municipal land. Given their relatively formal approach, the Regulation should simplify the process of

negotiation and execution of the land lease agreements.

The main amendments introduced by the Regulation are as follows:

(1) the number of essential terms contained in the Model Agreement is has decreased. There are only three

essential terms now, namely: a lease object (cadastral number, location and total area), lease term and

lease payment (including its amount, indexation, method and rules of calculation, terms and order of its

payment and its review, liability for non-payment);

(2) the annexes to the land lease agreement (including plan or scheme of a land plot, certificate on

determination of the land plot's boundaries afield, etc.) are no longer mandatory;

(3) the Model Agreement now allows the lease of several land plots owned by the same landlord under one

lease agreement;

(4) a minimum term for the lease of some types of land is specified;

(5) it is provided that a lease agreement comes into force on the date of its signing rather than its state

registration (according to the Law it is the lease rights that are subject to registration); and

(6) the lease payment for state and municipal land is determined as a percentage of the land normative

monetary valuation and is therefore reviewed on this basis.


Regulation of the Cabinet of Ministers of Ukraine No. 843 “On Amendments to the Model Land Lease

Agreement” dated 2 December 2016


Vitaliy Radchenko, Partner, Vitaliy.Radchenko@cms-cmck.com