On 02 July 2014 the Cabinet of Ministers of Ukraine adopted Order “On issues regarding state registration of property rights to the immovable property which is located on the temporary occupied territory” No.226 (the “Order”). The Order came into force on 09 July 2014.

According to the Order, state registration of proprietary rights to immovable property located on the territory of Autonomous Republic of Crimea and the city of Sevastopol (the “Crimean Immovable Property”) shall be performed by the departments of the state registration service in Kharkiv and Zaporyzhzhya regions.

We note that under the general principles, state registration of proprietary rights to immovable property in Ukraine is performed at the location of such property by the local departments of the state registration service of Ukraine (the “Registration Service”) and the proprietary right only becomes valid upon registration. However, due to the pending occupation of the Autonomous Republic of Crimea and the city of Sevastopol (the “Occupied Territory”) the departments of Registration Service located in the Occupied Territory are not able to perform state registration. This particular issue was initially raised in the law “On Procurement of Rights and Freedoms of Citizens of Ukraine on the Occupied Territories” as of 15 April 2014 No.1207-VII (the “Law”) which instructed the Cabinet of Ministers of Ukraine to authorise the departments of the Registration Service located outside of the Occupied Territory to perform state registration of proprietary rights to Crimean Immovable Property.