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Legislative changes in the area of ​​rent calculation, calculation of the statute of limitations and other innovations in connection with the spread of the COVID-19 coronavirus disease caused by the SARS-CoV-2 coronavirus

31/03/2020 Posted prokopyshynpartners

On March 30, 2020, the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Certain Legislative Acts Aimed at Providing Additional Social and Economic Guarantees in Connection with the Spread of the Coronavirus Disease (COVID-2019)” [No. 3275 of March 29, 2020].

In the specified Law, among other things, the “Final and Transitional Provisions” of the Civil Code of Ukraine were supplemented with new items, in particular:

– paragraph 12: during the quarantine established by the Cabinet of Ministers of Ukraine to prevent the spread of the coronavirus disease (COVID-19), the terms specified in articles 257 (general limitation of action), 258 (special limitation of action), 362 (preferential right to purchase a share in the right of joint partial property), 559 (termination of suretyship), 681 (limitation of action applicable to claims due to defects of the sold goods), 728 (limitation of action applicable to claims for rescission of the gift contract), 786 (limitation of action applicable to the requirements arising from the employment contract), 1293 (the right to challenge the actions of the executor of the will) of this Code are extended for the duration of such quarantine;

– paragraph 13: during the period of implementation in Ukraine of measures to prevent the occurrence, spread and spread of epidemics, pandemics, in particular the coronavirus disease (COVID-19), it is prohibited to increase the interest rate under the credit agreement;

– paragraph 14: from the moment the quarantine was established, introduced by the resolution of the Cabinet of Ministers of Ukraine “On preventing the spread of the acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus on the territory of Ukraine” under No. 211 of March 11, 2020 (with subsequent changes and additions) and until its completion in accordance with the procedure established by law, the lessee is exempted from the fee for using the property in accordance with the sixth part of Article 762 of this Code (the specified norm provides that the lessee is exempted from the fee for the entire time during which the property could not be used by him due to circumstances, which he does not answer).

In addition, the specified Law introduced changes to the Civil Code of Ukraine, in particular, Chapter IX “Final Provisions” of the Civil Code of Ukraine was supplemented with a new paragraph 7 with the following content:

“During the quarantine established by the Cabinet of Ministers of Ukraine to prevent the spread of the coronavirus disease (COVID-19), the terms specified in Articles 232 (procedure for the application of fines), 269 (guarantees of the quality of goods; claims due to defects in supplied goods), 322 (responsibility for violation of the subcontract for capital construction), 324 (subcontract for design and research works) of this Code shall be extended for the duration of such quarantine.”

Thus, the Law of Ukraine “On Amendments to Certain Legislative Acts Aimed at Providing Additional Social and Economic Guarantees in Connection with the Spread of the Coronavirus Disease (COVID-2019)” [No. 3275 of March 29, 2020], in case of its signing President of Ukraine:

  • 1. extends the statute of limitations provided by some norms of the Central Committee of Ukraine and the Civil Code of Ukraine. This will mean that the calculation of the duration of the statute of limitations (both general and special) will be increased for the duration of the quarantine (from March 12, 2020 until its end). Therefore, the extension of the period within which a person can apply to the court with a demand for the protection of his right and/or interest will be significantly extended.

  • 2. regulates the procedure for charging rent under lease agreements. Thus, from the moment the quarantine is established (from March 12, 2020) and until its completion in accordance with the procedure established by law, the tenant is exempted from paying for the use of the property, in accordance with Part 6 of Article 762 of the Civil Code of Ukraine. This norm provides that the tenant is exempted from payment for the entire time during which the property could not be used by him due to circumstances for which he is not responsible. Thus, if the tenant cannot use the property in accordance with the resolution of the Cabinet of Ministers of Ukraine No. 211 of March 11, 2020 or other local acts adopted to implement this resolution, he is released from the obligation to pay rent.

  • 3. explicitly prohibits banks and other financial institutions from raising interest rates under credit agreements. However, it should be remembered that we are talking only about credit agreements, not loan agreements.

    We urge you to strictly observe all rules and regulations. Take care of yourself and be healthy!

    If you have any questions or need to provide additional consultations and clarifications or provide other legal assistance – contact us, we are ready to help you!

    Lawyer Yaroslav Hasiak