Business news from Ukraine

Business news from Ukraine

Ukraine’s Ministry of Regional Development, Territories, and Internally Displaced Persons Proposes Introducing Quality Guarantee of at Least Ten Years for New Real Estate Properties

The Ministry of Communities, Territories, and Internally Displaced Persons of Ukraine (MinRegion) proposes introducing a quality guarantee of at least 10 years for new real estate properties immediately after they are put into operation; the government has already supported this initiative, according to the ministry’s press service. ‌

MinRegion clarified that, to implement these changes, it is proposed to amend the Civil Code of Ukraine and the laws “On the Regulation of Urban Development” and “On the Protection of Consumer Rights.”

“A person who purchases a new property should be protected not only at the time of purchase. We propose introducing a quality guarantee for the property lasting at least 10 years. If, during this period, the owner discovers defects that affect the property’s serviceability, they will be able to require the developer to remedy them. If the owner corrects the defects on their own, the developer must reimburse those costs,” said Deputy Minister Natalia Kozlovska, whose remarks are quoted in the press release.

The construction client or its successor in title will be responsible for the quality of the property during the warranty period.

The new rules will apply to completed properties that have been accepted for use, with the exception of properties built on the basis of a construction passport and certain properties with minor SS1 consequences, where the work was performed in-house.

The ministry’s press service reported that, following the adoption of the amendments, if defects are discovered during the 10-year warranty period, the owner must notify the construction client of them. Defects that affect the normal use of the property must be confirmed by a report from a certified specialist based on the results of an inspection. The construction client must, within 30 days, propose how and by when to remedy the defects, or provide a reasoned refusal. The owner must, within seven days, either agree to the proposed solution or reject it. Once agreed upon, the client must remedy the defects within the specified time frame. The owner may also remedy them independently or engage other specialists. In such a case, the construction contractor must fully reimburse the repair costs.

A similar initiative was included in government bill No. 13607 dated August 7, 2025, but following the resignation of Yulia Svyrydenko’s government, it was withdrawn on July 16, 2026. At that time, experts proposed extending the mandatory warranty to include SS1 buildings (most often private homes) and increasing the warranty period for monolithic-frame buildings to 30 years.

Source: https://www.facebook.com/share/p/1HeCiLQvVS/

https://itd.rada.gov.ua/billinfo/Bills/Card/57020

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Rauta Has Been Included in List of Taxpayers with High Level of Tax Compliance

The Ukrainian engineering and construction company “Rauta” has been included in the list of taxpayers with a high level of voluntary compliance with Ukrainian tax legislation, the company reported, citing Order No. 600 of the State Tax Service dated August 31, 2026.

According to Rauta, the company fulfills its tax obligations in a timely and complete manner and has no tax arrears.

“Responsible business is not just about fulfilling obligations, but first and foremost about the values that guide the company every day. Honesty in all aspects of our work and the conscientious payment of taxes are our contribution to strengthening Ukraine’s economy,” said Andriy Ozeychuk, director of Rauta.

On September 7, the State Tax Service reported that as of August 2026, 9,706 business entities had been included in the new list of taxpayers with a high level of voluntary compliance with the law—the highest number since the list was first compiled. Compared to August 2025, their number increased by nearly 36%.

Of the total, 9,132 are legal entities, including 5,068 companies under the general taxation system, 484 “Diya.City” residents, 1,707 legal entities that are Group III single-tax payers, and 1,873 Group IV single-tax payers. Another 574 entities on the list are individual entrepreneurs.

The companies included in the list paid 192.7 billion UAH in taxes to the consolidated budget from January through June 2026, representing 16.23% of all tax revenues for that period. The State Tax Service intends to publish the official list, approved as of August, on its website on September 18. Notifications were sent to the included taxpayers via their online accounts on September 1.

The State Tax Service compiles this list quarterly. General requirements include having no tax arrears or violations of reporting deadlines, not being classified as a high-risk VAT payer, and having no sanctions or bankruptcy proceedings. For legal entities under the general tax system, the list also takes into account the level of corporate income tax and VAT payments compared to industry averages, as well as employee salary levels.

Rauta has been operating in the Ukrainian construction market for over 25 years and specializes in the design, supply, and installation of structures for commercial and industrial buildings, the renovation of facilities, and general contracting. The company is the exclusive supplier in Ukraine of commercial products from the Finnish Ruukki Group. According to Rauta, the company has completed over 1,000 projects and supplied more than 2 million square meters of sandwich panels since its inception.

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Finnish company Happy Nordic Living plans to build prefabricated wood structure factory and residential neighborhood in Ukraine

The Finnish company Happy Nordic Living Oy plans to implement two projects in the Kyiv region—to build a factory for the production of prefabricated wooden structures and to create a pilot residential complex for residents of the region who have been affected by Russian attacks, as well as internally displaced persons (IDPs), according to a Wednesday report on the website of the Kyiv Regional Military Administration.

Natalia Gavatyuk, Deputy Head of the Kyiv Regional State Administration, held a meeting with Timo Mikkonen, CEO of Happy Nordic Living Oy, and his team, during which the parties discussed the prospects for implementing the investment project and the next steps for its launch.

According to the report, the plant is expected to create approximately 400 jobs: “Currently, sites in the region’s industrial parks are being considered for the production facility. This approach will allow for the necessary infrastructure to be prepared more quickly and for the project to move forward.”

At the same time, the company is considering the possibility of creating a pilot housing complex in the Kyiv region for residents of the region who have been affected by Russian attacks, as well as internally displaced persons (IDPs).

During the meeting, the parties agreed on mechanisms for further trilateral cooperation between the Kyiv Regional State Administration, Happy Nordic Living Oy, and consulting partner UVT GROUP to prepare a roadmap for the project.

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Greenville Has Resumed Construction of Prostir Residential Complex in Lysynychi

Construction work at the Greenville Prostir residential complex (Lviv Oblast, Lysynychi village, 2 Osvitna St.) has resumed following the resolution of a legal dispute regarding the terms of use of the land plot.

According to the developer’s press office, the dispute centered on the amount of rent for the land plot in Lysynychi. As part of the settlement, the Greenville Group and the Lviv City Council agreed on a new rent amount and a mechanism for compensating the community budget for the difference arising from the previous period of land use.

“As the project’s developer, we took responsibility for finding a solution. It was important for us not to prolong the legal dispute but to find a model that takes into account the interests of the city, the community, and our investors. Today, this issue has been resolved, and we are resuming work on Greenville Prostir,” said project manager Oleg Kozub.

On August 11, the Lviv Regional Commercial Court approved the agreement reached by the parties and closed the case. With the court restrictions lifted, the company was able to resume construction work on the site.

The company’s next step is to restore construction work to full speed and present investors with an updated project timeline.

According to the LUN new-construction portal, the Greenville group of companies, founded in 2007, is carrying out projects in Lviv and Kyiv; since 2010, 45 buildings have been commissioned, and six buildings are currently under construction.

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Labor shortages and high construction costs main challenges facing developers in Ukraine

Labor shortages, high construction costs, and the slow implementation of reforms and permitting procedures are the main challenges facing developers and architects in Ukraine during the war, according to representatives of the construction industry who spoke at the roundtable discussion “Building the Future: Development in Wartime.”

“There is a very severe shortage of construction workers. We all felt this problem this past spring. As a company owner, I am looking for people to finish building our projects,” said Oleksiy Baranov, founder and CEO of A Development, at the roundtable hosted by the Interfax-Ukraine news agency.

In addition to purely construction-related specialties, there is also a shortage of architects on the market, said Yulia Polyukhovich, chief architect of the A Development project.

“There are many other challenges during the war. For example, there is a very severe shortage of personnel—there are very few architects right now. This is a very serious challenge, because whereas previously three or four architects would work on a project, now there may be only one,” she explained.

At the same time, architects must quickly adapt projects to reflect changes in building codes and standards, particularly regarding safety, the expert noted.

As Vitaliy Borul, CEO of CREDO Development, noted, the construction of underground shelters with emergency exits is a significant expense for developers, and therefore the government should compensate for the cost of building them.

“It looks cool, it’s safe, but it’s very expensive. I believe the government should compensate for the cost of underground shelters. The government is responsible for people’s safety, so we need to reach some kind of agreement with the government, and it should cover these costs,” the expert said.

Developers have also seen a significant increase in construction costs. Furthermore, the market reacts to every enemy attack on the city—after “strikes,” housing sales drop. Insurance against construction risks is also very expensive, Baranov noted.

“Before the war, the calculation was simple: the cost of materials (concrete or brickwork) was equal to the cost of labor. Today, the cost of labor exceeds the cost of materials by 2–3 times,” said the founder of A Development.

According to Baranov, significant obstacles are also created by unresolved procedures regarding the adoption of subordinate legislation by the government and ministries, particularly in the area of cultural heritage protection. At the same time, Kyiv’s local authorities have not considered land allocation requests for 1.5 years.

“For example, amendments were made to the law on cultural heritage, but the Ministry of Culture has not yet approved the relevant regulations. In May 2022, amendments came into effect under which it is impossible to carry out any work in the central historic area without designated zones and regulations. Yet the procedure was only approved in May of this year—meaning four years have passed. And yet, for example, there is still no procedure regarding heritage sites,” he noted.

Baranov emphasized that construction in Kyiv’s historic center must be well-thought-out and transparent, but at the same time controlled by the city.

“Kyiv must set an example. Construction is very expensive, and you can’t just erase a building with an eraser. We need to adopt an approach that ensures everything happens transparently and quickly, while still building structures that will remain relevant for years to come,” the expert said.

Source: https://www.youtube.com/watch?v=KqogZd3yVbQ

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“Kyivmiskbud” Paid Over 81 Mln UAH in Taxes Over Three Years

PJSC “Kyivmiskbud” Holding Company contributed 81,364,000 UAH to the state and local budgets between April 1, 2023, and March 31, 2026, the company’s press service reported.

“Kyivmiskbud” once again demonstrates transparency and financial discipline. Even under challenging anti-crisis conditions, the company remains a conscientious taxpayer. We operate transparently, comply with legal requirements, and are systematically moving forward,” said Yuriy Tykhonovych, acting chairman of the holding company’s board of directors.

From July 8 to August 18, 2026, “Kyivmiskbud” underwent a scheduled on-site audit by the Main Directorate of the State Tax Service in Kyiv. The audit examined compliance with tax, foreign exchange, and other laws for the period from April 1, 2023, to March 31, 2026, as well as the timeliness of payments of the unified social contribution (USC) from July 1, 2021, to March 31, 2026. A corresponding report was drawn up based on the results of the inspection.

During the specified period, “Kyivmiskbud” paid 81,364,000 UAH to the state and local budgets, of which land rent amounted to 28,086,000 UAH; Unified Social Contribution (USC) – 20,830,000 UAH; personal income tax (PIT) – 17,764,000 UAH; land tax – 6,143,000 UAH; real estate tax – 5,199,000 UAH; military levy – 3,304,000 UAH; income tax – 34,850 UAH.

At the same time, late payment of land rent for 2023 in the amount of 647,800 UAH was identified, the company’s losses for the reporting period were reduced, and additional income tax for the third quarter of 2023 in the amount of 1,833,000 UAH was assessed.

As previously reported, Kyivmiskbud’s balance sheet includes 24 construction sites where more than 120 residential buildings at various stages of completion have been erected. The total area of unfinished construction exceeds 548,000 square meters. The developer began restoration work in March 2026 at a number of sites. In July, the “Podol Grad” residential complex was commissioned. Five more projects are at an advanced stage of completion (the “Freedom” residential complex, the “Twin House” residential complex, the “Oberig-2” residential complex (Building 1), the “Rainbow” residential complex, and the “Gvardeysky” residential complex).

Active construction and installation work is underway at four additional sites.

Kyivmiskbud Holding Company was established in 1994 on the basis of the assets of the state-owned municipal construction corporation “Kyivmiskbud” by consolidating controlling stakes in 28 enterprises and other assets into its authorized capital. It comprises 40 joint-stock companies in which the company holds shares, as well as six subsidiaries and 51 companies with associate member status.

According to data from the National Securities and Stock Market Commission (NSSMC), the Kyiv City Council is the majority shareholder of Kyivmiskbud Holding Company PJSC.

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