The following story is reported exclusively for Ukraine Rebuild Newswire by the law firm CMS Ukraine as part of a partnership created to better inform investors in Ukraine's reconstruction.
Ukrainian lawmakers are weighing legislative amendments that would allow detailed plans of a territory (DPTs) to directly establish functional zones, a move aimed at accelerating the development process.
If approved, the amendments could make it easier for investors and developers to initiate projects, boosting reconstruction efforts in Ukraine, which investors complain are weighed down by excessive bureaucracy.
Currently, functional zoning and designated land use must be defined through higher-level planning documents such as a territorial community’s Comprehensive Spatial Development Plan, a settlement’s Master Plan, or a territorial Zoning Plan.
These documents typically cover large areas and require a lengthy, often bureaucratic, approval process. As a result, developers face significant delays in aligning project plans with zoning requirements.
Functional zones determine the permissible categories of land use—such as residential, public, or industrial—while designated use specifies allowable activities within those zones. Generally, the designated use must comply with the applicable functional zone, although during martial law, Ukraine temporarily relaxed this rule to enable more flexible changes.
The proposed legislative change would effectively restore the legal position that existed before January 2025, when DPTs could establish functional zones directly. The removal of this option at the start of the year created a bottleneck for new development projects.
The reform comes as Ukraine seeks to unlock billions of dollars in foreign investment and donor support tied to its reconstruction. Investors have repeatedly flagged bureaucratic delays as key obstacles to scaling up operations in Ukraine.
CMS is a top 10 global, full-service law firm with 75 offices and over 4,800 lawyers worldwide, and is the largest law firm in Europe. CMS Ukraine, with 8 partners and over 30 domestic and internationally qualified lawyers, offers a full-service practice with unparalleled knowledge of the Ukrainian market. As part of the CMS Rebuilding Ukraine initiative, the team supports the National Recovery Plan, advises on legislative changes, and helps businesses navigate reconstruction and war-driven challenges.
