Ukrainian government opens construction sector to foreign companies

In a significant move, the Ukrainian government has authorised foreign companies to obtain construction permits. This development stems from amendments to Resolution No. 314 ?“Various matters for ensuring the conduct of economic activity under the conditions of martial law” enacted by the Cabinet of Ministers in August 2024.

The revised resolution permits representative offices of foreign companies and organisations in Ukraine to engage in the construction of large facilities without the need for a construction licence. The requirement is to submit a declaration only. This regulatory relaxation is applicable during the period of martial law.

The construction activities covered under this provision include objects classified under medium (СС2) and significant (СС3) classes of consequences:

• An example of СС2 class objects: residential buildings with a height of five floors or more but not higher than 100 metres and accommodating not more than 400 residents.
• A СС3 class objects cover the following buildings: multi-apartment residential buildings over 100 metres high, large public buildings, industrial facilities, educational institutions, malls, hospitals, and similar structures.

While the regulatory environment has been simplified, foreign investors must still comply with specific declaration requirements. These include providing detailed information about their operations, tax registration, and adherence to Ukrainian legislation.

Foreign companies willing to carry out construction in Ukraine operating through a permanent representative office must submit a declaration that includes the following limited and exhaustive information:

1. Non-resident information and permanent representative office information;
2. An operational address in Ukraine;
3. Economic activity to be carried out;
4. Permit that is being replaced or amended by the declaration (a construction licence);
5. Compliance note – acknowledgment of compliance with Ukrainian legislation requirements for licensed activities.

The decision to open the construction sector to foreign companies without the need for a licence during martial law is a strategic move to attract international investment. For foreign investors, this presents a unique opportunity to engage in diverse and potentially lucrative projects, contribute to Ukraine’s rebuilding efforts, and establish a long-term presence in a market poised for growth.

For more information on opportunities in Ukraine’s construction sector, contact our Ukrainian experts: Natalia Kushniruk , Mykhaylo Soroka .