On 2 September 2026, the Ukrainian Parliament adopted Law No. 4961-IX on improving the functioning of industrial parks in Ukraine.
The Law is intended to remove regulatory barriers affecting the development of industrial parks and improve their attractiveness as an investment tool. For real estate investors and developers, the most relevant changes concern land use, expansion and development opportunities, transfers of land rights and the management structure of industrial parks.
New land regime for industrial parks
The Law introduces a distinct type of designated land use for industrial parks. This designation cannot be changed during the term for which the relevant industrial park has been established.
The previous 1,000 hectares maximum area limit is removed while land plots separated by protective forest belts can still form part of the same industrial park. The Law also expressly allows the initiator of an industrial park, either on its own initiative or at the request of the managing company, to expand the boundaries of an industrial park.
For existing industrial parks, industrial land where a registered industrial park is located will be treated as industrial-park designated land. The relevant information may be entered into the State Land Cadastre at the request of the owner or land user without the need to prepare land-management documentation.
More flexible land use and transfer arrangements
Where the initiator of an industrial park leases the relevant land, it may sublease the land or part of it directly to participants and other entities of the industrial park without the landlord’s prior consent, unless this is prohibited by the underlying lease agreement.
The Law also removes the previous 30-year minimum land-use term applicable to state and municipal land within industrial parks. Instead, the term of land use must be at least equal to the term for which the relevant industrial park has been established, and this must be reflected in the relevant land-lease agreements.
If the initiator transfers ownership or use rights of all land plots within an industrial park to another person that is not the managing company, a participant or another entity of the park, that person acquires all rights and obligations of the initiator.
This is particularly relevant for acquisitions of industrial park sites since a land transaction may involve not only the transfer of real estate rights but also the transfer of the regulatory status and obligations of the initiator.
Investors should also note that a landlord of state or municipal land granted without auction for the creation and operation of an industrial park may terminate the lease unilaterally if the park is removed from the Industrial Parks Register and is not re-entered within one year.
Simplified management structure
An initiator that is a business entity may decide to perform the functions of the managing company. In this case, the business acquires the status, rights and obligations of the managing company from the date of the relevant decision, without the need to enter into a separate agreement on the arrangement and operation of the industrial park.
This may simplify the corporate and contractual structure of privately developed industrial parks.
Wider development opportunities
The Law broadens the range of facilities that may be located within an industrial park.
In addition to production, warehousing and logistics facilities, industrial parks may accommodate offices, hotels and hostels, catering facilities and other supporting infrastructure.
Alternative energy facilities, energy storage facilities, waste-management facilities, dual-use structures and water infrastructure can also be located within industrial parks.
The Law also introduces the concept of an eco-industrial park with the detailed criteria for obtaining this status and the rules governing its operation to be determined by the Cabinet of Ministers of Ukraine.
These changes allow industrial parks to be developed as more integrated industrial and logistics projects rather than purely manufacturing sites.
State support and practical implications
The reform expands access to state support, including infrastructure funding and compensation of certain connection costs. Managing companies will also be able to access the state-supported “Affordable Loans 5-7-9%” programme while participants can benefit from tax and customs incentives under applicable legislation.
In addition, at least UAH 2 billion is to be allocated in the State Budget each year for state support for the development of industrial parks.
For investors and developers, the changes should make it easier to structure and expand industrial park projects. At the same time, legal due diligence should focus on the park’s status in the Industrial Parks Register, the underlying land arrangements and the consequences of any proposed transfer of the site.
The main provisions of the Law will enter into force three months after its publication while certain provisions will apply from the day following publication. Existing agreements between initiators and managing companies will remain valid for the term they were entered into.
For more information on this new Law and regulations governing industrial parks in Ukraine, contact your CMS client partner or the CMS experts who contributed to this article: Natalia Kushniruk, Mykhaylo Soroka.
