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In the first half of 2023, the lease of state property brought almost UAH 381 million to the budget of Ukraine

According to the results of the first half of 2023, 760 asset lease contracts were signed by the SPFU, which, together with other current agreements, made it possible to attract revenues of almost UAH 381 million to the state budget since the beginning of the year.

Despite the loss of a significant number of facilities due to military aggression and the occupation of certain territories, the state remains the largest landlord in the country, both by area and by the range of facilities.

"Today, facilities located in seaports bring substantial rental income to the state. For example, renting a warehouse in Chornomorsk brings in UAH 1.6 million a month, a site for storing wheeled equipment in Izmail — UAH 400 thousand a month. Today, we have certain risks in maintaining the amount of income from such facilities. Due to the suspension of the grain agreement and the complete closure of sea transport corridors, income from the lease of port infrastructure may fall, since, according to the decisions of the Government, port operators who do not use the leased property are exempted from rent. However, the SPFU, operating over 14,000 contracts, including objects of different value and direction, plans to attract another UAH 435 million to the budget by the end of the year," says Andrii Shramko, head of the Department of Lease and State Property Management of the SPFU.

Despite the war, Ukrainians are actively renting state property — in the first half of 2023, 776 participants took part in auctions, and the total winning price of all bids increased by an average of almost 3.15 times the starting price. During January-June 2023, the most active rental auctions took place in Lviv oblast, Zakarpattia and Volyn — 119 auctions were held in these regions since the beginning of the year. 

"Relocated business is currently operating in the western regions, in addition, entrepreneurs are more willing to choose facilities that are closer to the European border due to logistics and security issues. Nevertheless, the Fund is active in attracting tenants even in the frontline areas, where business activity is gradually recovering. For example, we leased part of the premises of the Metalist stadium in Kharkiv with an area of 854 square meters, a dining room with an area of 359 square meters in Dnipro, part of the premises of the cargo storage warehouse with an area of 250 square meters in Mykolaiv," explains Andrii Shramko.

The SPFU rents out both large areas of industrial use, as well as individual buildings and even parts of premises with a size of 1 square meters. To open their own business, private entrepreneurs willingly rent them - this is how mini-cafes, public laundries, networks of vending machines for bottling purified water and other interesting projects appear.

"During the war, the state, as a landlord, became a reliable partner for business. There are advantages: the rental price does not change during the period of the contract, the terms of the contracts are now 5 years or more, there are a number of benefits for tenants during the period of martial law," adds Andrii Shramko.

Often, lease relationships with the state develop into the acquisition of these assets by entrepreneurs. The Fund plans to tell Ukrainians about these and other interesting cases of leasing and privatization in a special project that will start in July on the NV resource.

You can view the information about all rental offers on the website orenda.gov.ua, as well as in our Telegram channel "Rent in Ukraine".