Usufruct of communal property: Communities preparing to transition to European management standards

On 11 November 2025, a webinar titled ‘Usufruct of communal property: specifics for basic-level local governments’ was held. The event was organised by the All-Ukrainian Association of Amalgamated Territorial Communities, in partnership with the Ministry for Development of Communities and Territories of Ukraine and the Polaris Programme ‘Supporting Multi-Level Governance in Ukraine’. The event brought together over 650 representatives of communities from all regions of Ukraine.


The webinar examined the concept of usufruct and analysed: the list of communal property for which usufruct may be established; the list, status, rights and obligations of usufructuaries; the procedure for making decisions and formalising legal acts on the establishment, extension and early termination of usufruct of communal property; the specifics of acceptance, transfer and accounting for transactions involving the establishment of usufruct.

‘Ukraine has begun a three-year transition to a new corporate governance system for state-owned and municipal enterprises. Law No. 4196-IX introduces a large-scale transformation whereby enterprises in ‘outdated’ organisational and legal forms must be converted into business entities – specifically, limited liability companies (LLCs) or joint-stock companies (JSCs) – in accordance with European standards,’ emphasised Oleksii Riabykin, Deputy Minister for Development of Communities and Territories of Ukraine.

As Serhii Sharshov, Deputy Executive Director of the All-Ukrainian Association of Amalgamated Territorial Communities, noted, ‘The issue of organisational and legal reforms of communal property in accordance with the new legislation is a pressing matter for communities. Therefore, the All-Ukrainian Association of Amalgamated Territorial Communities has launched a series of webinars on this topic.’

‘The Polaris programme aims to address the needs of the multi-level governance system while strengthening the capacity of communities to provide public services and participate directly in recovery and reconstruction processes in line with EU accession requirements. The transition to a new corporate governance system for municipal enterprises is a step forward for Ukrainian communities in achieving EU standards,’ said Susanna Dellans, Polaris Team Leader, SALAR International Representative in Ukraine.

Keynote speakers at the event were:

  • Vira Kozina, lawyer, Polaris Programme consultant;
  • Halyna Nereta, economist, Polaris Programme consultant;
  • Tetiana Stankus, economist, expert on accounting in the budgetary sphere, Polaris Programme consultant;
  • Yurii Zalinskyi, lawyer, Polaris Programme consultant

Recording and presentation materials from the webinar can be viewed via the following link:

Presentation materials

The next webinar on the topic: ‘Transformation of a utility commercial enterprise into a joint-stock company or limited liability company under Law No. 4196: First meeting’ will take place on 25 November 2025.

Registration at the link

Source:

Всеукраїнська асоціація ОТГ

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