Legal Hotline | Digest of the main legislative changes in Ukraine 22.10.2020

Law on extending the moratorium on recovering the pledged property under loans in foreign currency came into force

Law “On Amending Certain Legislative Acts of Ukraine on the Moratorium on Recovering Property from Citizens of Ukraine Provided as Collateral under Loans in Foreign Currency” No. 895-IX came into force on October 8, 2020.

The Law extends until 21/04/2021 the moratorium on enforcement recovery of residential real estate, property rights thereto if it is used as a place of permanent residence of a borrower or is an unfinished residential construction site, and the borrower and property guarantor have no other residential real estate.

Furthermore, the Law establishes prohibition on enforcement recovery of other property (property rights) under mortgage agreements from persons obliged under loans granted in foreign currency, as well as prohibition for lending institutions to assign their claims to the borrower to another person.

Mandatory keeping of customer feedback book has been cancelled

Order of the Ministry for Development of Economy, Trade and Agriculture No. 1130 dated 16/06/2020 came into force on October 2, 2020 and cancelled the mandatory keeping of customer feedback book.

After the customer feedback book is cancelled, consumers will be able to leave feedback via the hotline, e-mail or mail or social media. Furthermore, today consumers may apply to the State Service of Ukraine on Food Safety and Consumer Protection and its territorial bodies for the protection of violated rights both in paper and in electronic form.

The President signed the law on consumer lending

On October 6, 2020 the President signed Law “On Amendments to Certain Laws of Ukraine Concerning Consumer Lending and the Formation and Circulation of Credit Histories” No. 891-IX, which will come into force on January 1, 2021.

It is established by the Law that loan agreements entered into for up to one month, and agreements the total amount of loan under which does not exceed one minimum salary shall be classified as consumer loans, and requirements of the Law “On Consumer Lending” shall apply to such agreements.

Therefore, the Law creates conditions for proper regulation of rapidly evolving microloan market. In particular, the document determines the conditions of providing and including information about microloans to the Bureau of Credit Histories.

In addition, the maximum aggregate sum of penalties and late performance fees, which may be charged for breaching the obligations under such loans, shall be fixed in the amount not exceeding the double amount of a received loan. Moreover, it shall be prohibited to change the interest rate in a way, which is worse for the consumer, and to impose penalties and late performance fees for the same violation.

The Cabinet of Ministers of Ukraine extended the adaptive quarantine

On October 13, 2020 the Government adopted Resolution No. 956 “On Amending Resolution of the Cabinet of Ministers of Ukraine No. 641 dated July 22, 2020”, by which it extended the quarantine until December 31, 2020 and enhanced the safety measures in Ukraine.

Therefore, the Government changed the rules as to the allowed number of people during public gatherings:

• it is proposed to allow public events in the green area for a total of no more than 50 people subject to 1.5 m social distancing and mask regime;
• in the “yellow” area – no more than 30 people;
• in the “orange” area – no more than 20 people.

Holding of sports competitions shall be allowed without the audience, except for international competitions following a separate approval of the Ministry of Health.

It shall be prohibited for public catering business entities to work after 10.00 p.m. and before 07.00 a.m. without the organization of leisure (restaurants, cafes, bars, fast foods, canteens, cafeterias, snack bars, etc.), except for public catering services with door-to-door delivery and takeouts.

Furthermore, the Government recommends to set holidays from October 15 to October 30 for secondary education institutions based on the decision of the State Commission on Technogenic and Environmental Safety and Emergencies.

Reforms in land relations will be accelerated

Decree of the President “On Certain Measures on Accelerating the Reform in Land Relations” No. 449/2020 dated September 15, 2020 came into force on October 17, 2020, by which the President instructs the Cabinet:

• to activate the activity on transferring state-owned agricultural land plots into municipal ownership;
• to elaborate the issue on stimulating the registration by territorial communities of the title to agricultural land plots transferred from state ownership;
• to take measures in accordance with the established procedure on regulating the issue of ensuring the acquisition of citizens’ guaranteed right to land during the transfer into municipal ownership of state-owned agricultural land plots, in respect of which citizens were granted permission to draw up land management documentation;
• to ensure accompanying of draft laws on financial support to farmer’s enterprises, improving the system of management and de-regulation in land relations sphere, establishing a transparent process of holding electronic land auctions;
• to take measures in accordance with the established procedure on accelerating the creation, functioning and development of the national geospatial data infrastructure of Ukraine.

The law on benefits on paying the tourist duty and immovable property tax came into force

Law of Ukraine “On Amending the Tax Code of Ukraine on Clarifying Certain Conditions of Providing Benefits on Paying the Tourist Duty and Immovable Property Tax” No. 905-IX dated September 17, 2020, came into force on October 14, 2020.

The Law provides for a right of internally displaced persons not to pay the tourist duty for temporary residence in places specified in a certificate of registration of internally displaced persons.

Furthermore, the Law stipulates that real estate items located in the temporarily occupied territory, which are currently not a taxable item, will not be taken into account when calculating the immovable property tax base of individuals other than land plot.