Source: Yurydychna Gazeta (Legal Newspaper)
On August 8, 2025, the Law of Ukraine No. 4321-IX “On Amendments to Certain Legislative Acts of Ukraine Regarding the Simplification of Land Plot Allocation Procedures for the Development of Digital Infrastructure”came into force.
It establishes a mechanism for the compulsory alienation of land plots and other real estate within the territory of the Uzhhorod district of the Zakarpattia region during the period of martial law for their transfer to strategically important enterprises (including relocated ones).
Furthermore, the deadline for establishing and changing the designated purpose of land plots without developing comprehensive spatial development plans for territorial communities has been postponed from 2025 to 2028.
What changes does the law introduce and will it contribute to Ukraine’s reconstruction?
Norms introducing significant changes to the specifics of developing local urban planning documentation are important for the construction industry.
First and foremost, Law No. 4321-IX abolished the mandatory requirement to develop planning schemes for specific parts of Ukraine’s territory: several regions, the Black and Azov Sea coasts, the mountainous territories of the Carpathians, etc.
Moreover, the absence of approved planning schemes for specific parts of Ukraine’s territory is now not an obstacle to the development and approval of other types of urban planning documentation for such territories at the regional and local levels.
One of the innovations is the simplification of changing the designated purpose of land plots in the Uzhhorod district of the Zakarpattia region during the legal regime of martial law. Specifically, in cases of constructing complex industrial facilities, transport and communication buildings, industrial and warehouse buildings, office buildings, military engineering structures, and other engineering structures, changing the designated land purpose is permitted without adhering to the rules of correlation between the type of designated purpose and the type of functional use of the territory.
Most importantly, there is the restoration of the possibility to define the functional purpose of a territory through a detailed territory plan (DTP).
Specifically, it is established that until January 1, 2028, the functional purpose of the territory may be defined by a detailed territory plan. In determining the functional zone in such a case, it is not permissible to change (clarify) functional zones previously defined by the zoning plan or the general plan of a settlement on islands, within water protection zones, coastal protective strips, territories and objects of the nature reserve fund, water bodies, or territories where forests, squares, and parks are located.
It is important that this provision does not apply to territories where comprehensive plans or general plans of a settlement have been approved in accordance with the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding Land Use Planning” dated June 17, 2020.
What does this mean for the construction industry?
Until January 1, 2025, the functional purpose of a territory could be defined by developing detailed territory plans without the need to amend the general plans of settlements. Starting from January 1, 2025, establishing functional zones or changing the functional purpose of the territory was carried out exclusively with an approved comprehensive spatial development plan.
However, most territorial communities did not initiate the complex process of developing comprehensive plans, which in turn jeopardized the ability to change the designated purpose of land plots, as well as the ability to proceed with construction due to the need for initial changes to the functional purpose of the territory.
Law No. 4321-IX postponed the deadlines for developing comprehensive spatial development plans and allows the functional purpose to be defined exclusively by a detailed territory plan until 2028.
The DTP now serves as a sufficient instrument for defining the functional purpose of a territory until 2028. This approach is particularly crucial for the development of industrial enterprises, critical infrastructure facilities, as well as the construction of social and commercial objects, as it allows for an operational response to the needs of the economy and society, ensuring flexibility in planning and a real opportunity to launch construction immediately.
Law No. 4321-IX also introduces a special mechanism for the compulsory alienation of land plots and other real estate for reasons of public necessity during martial law for placement in the Uzhhorod district of the Zakarpattia region of:
Compulsory Alienation Procedure:
The initiators of the compulsory alienation may be central executive bodies, local self-government bodies, the General Staff of the Armed Forces of Ukraine, as well as enterprises that will carry out the construction and operation of the objects for which the compulsory alienation is being performed.
Based on the review of the initiator’s application for the compulsory alienation of land plots and other real estate objects, the Zakarpattia Regional State Administration applies to the Cabinet of Ministers of Ukraine with a request to include the relevant business entity in the List of business entities for whose objects compulsory alienation of land plots and other real estate is permitted (hereinafter – the List).
The adoption of a decision by the Cabinet of Ministers of Ukraine to include the relevant business entity in the List is the basis for the following actions:
After the Cabinet of Ministers of Ukraine decides to include the relevant business entity in the List, the Zakarpattia Regional State Administration notifies the owners of such objects within five days of being informed of the decision.
If, within three months from the date the Cabinet of Ministers’ decision comes into force, the property owner has not submitted an application for consent to the sale of the property or has not appeared to conclude the relevant agreement, the Zakarpattia Regional State Administration prepares and submits to the Cabinet of Ministers a draft decision on:
Thus, if the potential object for compulsory alienation is a residential building, residential premises, including the land plot beneath these objects, and if the owner has refused to conclude a sale-and-purchase agreement, these individuals should expect a court lawsuit for the compulsory alienation of the real estate objects for public necessity.
For all other objects, in the absence of consent from the property owner, the latter should expect the Cabinet of Ministers of Ukraine to adopt a corresponding decision on the compulsory alienation of the object.
What is the compensation value for owners of compulsorily alienated property?
The value of the real estate, including the value of the alienated land plots, and the amount of damages compensation will be determined based on market value through an independent property valuation.
Additionally, the payment for the value of the compulsorily alienated objects will be made at three times the market value. Furthermore, if a sale-and-purchase agreement was voluntarily concluded between the owner and the Zakarpattia Regional State Administration, an additional 20% of the triple value of the object will be added to this amount.
The payment of triple value applies exclusively to objects alienated within the Uzhhorod district of the Zakarpattia region.
In conclusion, Law No. 4321-IX introduces positive changes regarding the restoration of the possibility to define the functional purpose of a territory by a detailed territory plan. This is crucial as, in current conditions, it allows businesses to make operational decisions and ensure the relocation of enterprises, the construction of energy facilities, and more.
Furthermore, Law No. 4321-IX standardizes the procedure for the compulsory alienation of land plots and other real estate for placing defense-industrial complex objects and infrastructure objects in the Uzhhorod district of the Zakarpattia region.
Enterprises that will carry out the construction and operation of the objects, for which the compulsory alienation is performed, have the opportunity to initiate the compulsory alienation of land plots, while the state, in turn, must ensure fair satisfaction for the alienated objects.
Author: Olha Sydorchuk, Partner at Altelaw & Sempra
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