On June 19, 2025, the Ukrainian Parliament approved a new law (No. 7508) on concessions and Public-Private Partnerships (PPPs), replacing the framework that had been in place since 2011. The new law modernizes the institutional environment for PPPs by establishing a unified, transparent, and functional system to attract private capital for the restoration and development of critical infrastructure.
The adoption of the new law represents a significant breakthrough, as the previous framework was considered inadequate, dysfunctional, and limited in scope. It also marks a major step forward in aligning Ukraine’s legislation with that of the European Union.
Specifically, the law:
- Aligns with best European practices and the recommendations of international financial institutions (such as the World Bank and the European Bank for Reconstruction and Development) for the implementation of PPP projects, introducing a hybrid financing model that combines state funds, international grants, and private investments.
- Expands the scope of the PPP framework to include public enterprises (particularly in the energy and transportation sectors), as well as projects in health and defense.
- Introduces fast-track procedures for strategically important projects in the sectors of energy, transport, healthcare, education, and social welfare, applicable throughout the period of martial law and for at least seven years after its end.
- Simplifies procedures for small-scale projects (with an estimated value of up to €5.5 million), allowing municipalities and local communities to implement social infrastructure projects (such as schools, rehabilitation centers, and social housing) more rapidly and without excessive bureaucratic hurdles.
- Establishes full digitization of the PPP project cycle through a dedicated electronic platform for proposal submission and management, ensuring transparent and competitive procurement processes.
- Enhances legal certainty for investors through stability clauses, provisions for international arbitration, and compensation in the event of unilateral termination or changes to the regulatory framework.