Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
Publicación cientíca en formato digital
ISSN-Versión Impresa 0798-1406 / ISSN-Versión on line 2542-3185
Depósito legal pp 197402ZU34
ppi 201502ZU4645
Vol.40 N° 75
2022
Recibido el 24/09/22 Aceptado el 14/11/22
ISSN 0798-1406 ~ Depósito legal pp 198502ZU132
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Vol. 40, Nº 75 (2022), 649-664
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Legal Instruments for Solving Socio-
Economic Problems in Buchanskyi district
of Kyiv region: International Experience
and Legislation of Ukraine
DOI: https://doi.org/10.46398/cuestpol.4075.39
Volodymyr Ustymenko *
Olena Zeldina **
Vladyslav Teremetskyi ***
Nataliia Herasymenko ****
Olesia Batryn *****
Abstract
The purpose of the article is to identify the legal instruments
that can be used to solve the socio-economic problems of
post-conict Ukraine based on the analysis of international
experience. The research methods used were: analysis, synthesis,
systematic interpretation, comparison, generalization and prognosis, etc.
The socio-economic situation in the Buchanskyi district of the Kiev region
of Ukraine after the occupation and military actions is considered. Socio-
economic problems associated with the occupation and military actions are
justied: destroyed housing, transport infrastructure, social infrastructure,
industrial facilities and municipal facilities; low level of socio-economic
development of the region; outow of working population, including
qualied specialists; lack of workplaces. It is concluded that, to solve the
socio-economic problems of post-conict Ukraine, such legal instruments
can be used as: imposition of special economic zones, granting the status
of “recovery territory”, creation of innovation parks, simplication of
*Doctor in Law, Corresponding Member of the National Academy of Sciences of Ukraine, Professor,
Director of the State organization «V. Mamutov Institute of Economic and Legal Research of the
National Academy of Sciences of Ukraine» of the National Academy of Sciences of Ukraine, Kyiv,
Ukraine. ORCID ID: https://orcid.org/0000-0002-1094-422X
** Doctor in Law, Professor, Head of Sector of the State organization «V. Mamutov Institute of Economic
and Legal Research of the National Academy of Sciences of Ukraine» of the National Academy of
Sciences of Ukraine, Kyiv, Ukraine. ORCID ID: https://orcid.org/0000-0002-7275-7817
*** Doctor in Law, Professor leading research scientist of the Department of International Private and
Comparative Law, Academician F.H. Burchak Scientic Research Institute of Private Law and
Entrepreneurship, National Academy of Legal Sciences of Ukraine, Kyiv, Ukraine. ORCID ID: https://
orcid.org/0000-0002-2667-5167
**** PhD in Law, Senior Researcher of the State organization «V. Mamutov Institute of Economic and
Legal Research of the National Academy of Sciences of Ukraine» of the National Academy of Sciences
of Ukraine, Kyiv, Ukraine. ORCID ID: https://orcid.org/0000-0003-4420-4972
***** PhD in Law, judge of the Pechersky District Court of Kyiv, Kyiv, Ukraine. ORCID ID: https://orcid.
org/0000-0001-9798-201X
650
Volodymyr Ustymenko, Olena Zeldina, Vladyslav Teremetskyi, Nataliia Herasymenko y Olesia Batryn
Legal Instruments for Solving Socio-Economic Problems in Buchanskyi district of Kyiv region:
International Experience and Legislation of Ukraine
permit procedures for the acquisition of land rights and for the start of
reconstruction. Finally, the legal norms that are premises for the use of the
above-mentioned legal instruments and revealing the directions of their
improvement are investigated.
Keywords: legal instruments; Buchanskyi district of Kiev region; socio-
economic problems; special economic zones; reclamation
territory.
Instrumentos legales para resolver problemas
socioeconómicos del distrito de Buchansky de la región
de Kiev: experiencia y legislación internacional
Resumen
El propósito del artículo es identicar los instrumentos legales que se
pueden utilizar para resolver los problemas socioeconómicos de la Ucrania
posterior al conicto en función del análisis de la experiencia internacional.
Los métodos de investigación utilizados fueron: análisis, síntesis,
interpretación sistemática, comparación, generalización y pronóstico, etc.
Se considera la situación socioeconómica en el distrito de Buchanskyi de la
región de Kiev de Ucrania después de la ocupación y las acciones militares.
Los problemas socioeconómicos asociados con la ocupación y las acciones
militares están justicados: viviendas destruidas, infraestructura de
transporte, infraestructura social, instalaciones industriales e instalaciones
municipales; bajo nivel de desarrollo socioeconómico de la región; salida
de población activa, incluidos especialistas calicados; falta de lugares de
trabajo. Se concluye que, para resolver los problemas socioeconómicos de
la Ucrania posterior al conicto, se pueden utilizar instrumentos legales
como: la imposición de zonas económicas especiales, otorgando el estatus
de «territorio de recuperación», la creación de parques de innovación,
simplicación de trámites de permisos para la adquisición de derechos de
tierra y para el inicio de la reconstrucción. Finalmente, se investigan las
normas jurídicas que son premisas para el uso de los citados instrumentos
jurídicos y revelando las direcciones de su perfeccionamiento.
Palabras clave: instrumentos jurídicos; distrito de Buchanskyi de la
región de Kiev; problemas socioeconómicos; zonas
económicas especiales; territorio de recuperación.
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Introduction
The negative socio-economic situation resulting from the military
actions in Ukraine requires an extraordinary and immediate solution. The
destruction of industrial and infrastructure facilities during the military
actions had an extremely negative impact on the economic processes in
Ukraine, so the economy in this period is signicantly dierent from the
economy in peacetime. During the war there are intensive population
movements, macroeconomic imbalance, low mobilization of public
incomes, deterioration of social indicators and weakening of institutions.
The combined weight of these problems makes it extremely dicult to
generate income and grow the economy long after the conict is over.
Ukrainian society cannot wait for the end of military actions, so the
problems in the socio-economic sphere must be solved without delay.
“Post-conict reconstruction is aimed at strengthening peace and security,
as well as achieving sustainable socio-economic development in a country
destroyed by war.
The term “post-conict” does not mean the destruction of the root causes
of the conict. It also does not mean the complete cessation of military
actions, which often reoccur even after the signing of a peace agreement or
the holding of elections. It often means only a reduction in military actions
or “a window of opportunities” for peace in a conict that can escalate again
if not managed properly (Fischer, 2004; Hamre et al., 2002).
It is worth noting that when the United States announced the Marshall
Plan, the result of World War II was generally accepted. On the contrary,
modern reconstruction works often begin in highly unresolved post-conict
conditions where renewed military actions are still very likely (Chesterman,
2004).
1. Methodology of the study
The authors of this study used the dialectical method of cognition and a
number of general scientic special methods of scientic research.
Thus, the method of monographic analysis helped to clarify the issues
that are relevant and researched by scientists and covered in scientic
publications. The method of analysis and synthesis made it possible to
summarize information on the main trends in solving socio-economic
problems in military conicts in world practice. The application of the
systematic method allowed to systematize socio-economic problems in
Buchanskyi district of Kyiv region, which are caused by the occupation and
military actions.
652
Volodymyr Ustymenko, Olena Zeldina, Vladyslav Teremetskyi, Nataliia Herasymenko y Olesia Batryn
Legal Instruments for Solving Socio-Economic Problems in Buchanskyi district of Kyiv region:
International Experience and Legislation of Ukraine
The method of economic and legal analysis was used to identify legal
instruments that can be used to solve socio-economic problems in the
Buchanskyi district of Kyiv region, namely: the introduction of special
economic zones, granting the status of “territory of recovery”, the creation
of innovation parks, simplication of permitting procedures for acquiring
land rights and for the beginning of the construction. The method of
generalization allowed to make conclusions based on the conducted
research.
2. Analysis of recent research
A small number of scientic works are devoted to the study of legal
instruments that can be used to solve socio-economic problems in
Buchanskyi district of Kyiv region through the prism of world experience.
We are convinced that this indicates the relevance and need for research on
this issue.
Thus, the peculiarities of legal regulation of the introduction of martial
law in Ukraine are considered in the joint work of Teremetskyi and Vasyliev
(2022). The scientic work Cohn et al., (2018) is devoted to the directions
of post-war economic recovery. The issue of revival and reintegration
is considered in the scientic work of Fischer (2004). The formation of
the process of economic governance in post-conict countries and the
application of the lessons of the Marshall Plan in Iraq is devoted to the work
of Lewarne et al. (2004). The problems of post-conict reconstruction are
discussed in the scientic research of Hamre et al. (2002).
The issue of economic reconstruction of Bosnia and Herzegovina is
considered in the works of Tzifakis et al. (2006). The issues of rebuilding the
war-destroyed economy are considered in the scientic work of Haughton
(2001), the issues of introducing priority development areas to solve socio-
economic problems in Ukraine are considered in the scientic work of
Ustymenko et al (2021).
Based on the results of the studies of these scientists, it is advisable to
direct scientic research to identify legal instruments that can be used to
solve the problems of post-conict Ukraine.
3. Results and Discussion
3.1. Analysis of the socio-economic situation in Bucha district of
Kyiv region after the occupation and military actions
As a result of the military actions in the Kyiv region of Ukraine, such
human settlements as Bucha, Irpin, Hostomel, Borodianka were critically
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CUESTIONES POLÍTICAS
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damaged. According to the specialists of the Ministry of Economy of
Ukraine, the damage caused to Bucha amounts to 449 million US dollars.
Totally, 1,354 buildings were damaged in Bucha, 1,230 of them are
residential buildings, 29 - educational institutions, 9 - medical institutions,
12 - municipal facilities. 55 km of power lines, 75 km of gas pipeline and
10 km of water pipeline were destroyed, a traction power plant and water
supply facilities that centrally supplied Bucha with electricity and water
were bombed (It became known what damages Russian troops inicted on
Bucha, 2022).
During the occupation of Irpin, 10.5 thousand buildings were damaged,
2501 of which were completely or strong destroyed, and the damage to
the city’s infrastructure is estimated at 25.3 billion hryvnias or almost
922 million US dollars. A signicant number of industrial infrastructure
facilities were destroyed (Irpen’s losses from the war with Russia amount
to $922 million, 2022).
Damages from the destruction of the airport in Gostomel are estimated
at one billion US dollars. Except for the destruction of the An-225 Mriya
and other airplanes, the aireld infrastructure and the ight test base were
almost completely destroyed (Hordiichuk, 2022). In urban settlement
Borodyanka, 164 buildings were damaged, including 42 completely
destroyed houses (Pryshchepa, 2022).
Currently in the human settlements: Bucha, Irpin, Hostomel,
Borodianka have the following problems: destroyed housing stock, transport
infrastructure (roads, bridges, etc.), social infrastructure (educational
institutions, medical facilities, etc.), industrial facilities, power lines, water
supply facilities, other municipal facilities; low level of socio-economic
development of the region; there is an outow of working population,
including qualied specialists; lack of working places.
Therefore, it is necessary to create new and preserve existing working
places:
First, there is the need to rebuild what war too often destroys: homes; tools,
animals, plants, markets, workshops, factories and other means of livelihood;
bicycles, carts, cars, buses and other forms of mobility; roads, bridges, railways,
power grids, schools, hospitals and clinics, and more. Second, beyond rebuilding
that which has been destroyed, war creates an entirely new set of needs, including:
gaps caused by war’s disruption of health care and education which need to be
remedied; both individuals and families dealing with the injuries and traumas of
war need systems of care; roads and elds need to be de-mined; despoiled and
poisoned landscapes need recovery eorts; widow- and child-headed households
need new forms of livelihood and support; and large numbers of people who have
been displaced need to be resettled. Third, there will need to be a transformation
from a war economy, in which some of a country’s most violent actors’ control and
exploit both licit and illicit goods, to a peacetime economy (Cohn et al., 2018: 2).
654
Volodymyr Ustymenko, Olena Zeldina, Vladyslav Teremetskyi, Nataliia Herasymenko y Olesia Batryn
Legal Instruments for Solving Socio-Economic Problems in Buchanskyi district of Kyiv region:
International Experience and Legislation of Ukraine
Solving these problems requires signicant nancial resources, but
the state and local budgets of Ukraine do not have such resources. This is
due to the fact that Ukraine has a very low capacity to collect revenues to
meet these needs, as the productive sector of the economy has decreased
disproportionately during the war, and it is the main tax base. At the same
time, there is a need for high military spending during the war.
Despite the existing problems, it is necessary to nd eective tools to
solve the whole complex of problems. Their solution is possible by attracting
national and foreign investments. However, it is very problematic to attract
investors to the region where there were military actions and destroyed
transport, social and industrial infrastructure. Therefore, it is necessary to
nd a special economic and legal mechanism that will solve this problematic
situation.
It is not enough to determine what needs to be done; it is also important to
know when - i.e., to sequence reforms properly and, implicitly, to make choices
about what to do and what not to do at any point in time. The main lesson is
that one must move quickly, especially with the stroke-of-the-pen measures,
which include opening up to trade, getting an appropriate exchange rate, cutting
ination, bringing the budget decit to a manageable level, and petty privatization.
Most other issues simply cannot be resolved so quickly, and will need to wait
(Haughton, 2001: 256).
3.2. The main trends of solving socio-economic problems in the
conditions of military conicts in the world practice
To develop solutions in such a dicult situation, it is necessary to turn to
the experience of countries that have been in the same or similar situation
and analyze the economic and legal instruments that have been used in
world practice to solve these socio-economic problems in the context of
military conicts, as well as the possibility of adapting them to Ukrainian
realities.
Despite the fact that donors have recently participated in numerous
post-conict reconstruction programs, the recovery of Western Europe
after the end of World War II is considered the most successful story. This
is not due to the amount of money that was provided to Western European
countries.
While Germany received about 200 USD per person during the rst
two post-war years, Bosnia and Herzegovina received over 1400 USD per
person after the signing of the Dayton Agreement (Lewarne et al., 2004).
However, in the case of Bosnia, the availability of such large amounts of aid
had a negative side eect on the dependence of the local economy on aid.
The Bosnian case has also shown that serious coordination problems can
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CUESTIONES POLÍTICAS
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arise when several donors are involved in reconstruction and each of them
denes their own aid programs. “For example:
The reconstruction of Bosnia demonstrated that the adoption by the
international community of a predominant role in the management of a recipient’s
economy could have as a side-eect the absence of ‘local ownership’ and the
development of passivity towards the reform process (Tzifakis et al., 2006: 79).
The analysis of existing examples in the world practice of solving socio-
economic problems after military actions allows us to highlight several
aspects:
1) there are many ways in which donors can usefully help in post-war
economic recovery;
2) projects in war-torn economies need to be exible, as conditions
change rapidly;
3) the control over the project implementation is very important;
4) it is important to develop local human and nancial potential;
5) some projects, no matter how promising they may be on paper, may
be premature in conditions of weak governance structures;
6) it is necessary to use existing advantages;
7) recovery can be very slow and requires the creation of long-term
growth relationships.
Thus, successful post-conict recovery requires sustained economic
growth that is accompanied by employment expansion and solves horizontal
inequalities where they are severe. State capacity, including the ability
to generate revenue and spend it eectively, must be quickly restored.
Recovery eorts should rst prioritize incentive policies that will attract
investment and also facilitate the return of skilled labor. This can be crucial
for recovery, especially in the early stages.
3.3. Analysis of Ukrainian legislation that can be a premise for
solving socio-economic problems of post-conict Ukraine
The study of Ukrainian legislation shows that there are legal norms that
can be used to solve socio-economic problems in post-conict Ukraine.
These are the existing legal norms that have already demonstrated in
practice the possibility of being a mechanism for solving problems in the
economy of Ukraine, as well as the legal norms that have recently been
adopted or are awaiting adoption and are directly related to the need to
solve the socio-economic problems that have developed after the hostilities
in the Buchanskyi district of the Kyiv region of Ukraine.
656
Volodymyr Ustymenko, Olena Zeldina, Vladyslav Teremetskyi, Nataliia Herasymenko y Olesia Batryn
Legal Instruments for Solving Socio-Economic Problems in Buchanskyi district of Kyiv region:
International Experience and Legislation of Ukraine
Let us dwell in more detail on the norms of law that can become a legal
instrument for solving the problems of modern Ukraine, including in
Buchanskyi district of Kyiv region (table. 1).
Table No. 01. Legal instruments for solving socio-economic problems of post-
conict territories of Ukraine.
Legal instruments for solving socio-economic
problems of post-conict territories Regulatory and
legal support
1. Creation of special (free) economic zones (SEZ),
providing incentives for investors who invest in the
restoration of production and infrastructure facilities.
Article 401 of the
Commercial Code
of Ukraine
2. Granting the status of “territory of recovery”, which
provides for the establishment of special mechanisms
by the executive authorities and local self-government
bodies to stimulate the development of territories
where military actions took place and which suered
destruction of infrastructure and housing.
Article 112 of the
Law of Ukraine
“On the Principles
of State Regional
Policy” as amended
on 27.07.2022
3. Creation of innovation parks as an instrument for the
development of the post-conict economy of Ukraine
in an innovative way.
Draft Law of
Ukraine “On
innovation parks”
4. Simplication of permitting procedures for acquiring
land rights and for the beginning of the construction Draft Law of
Ukraine “On quick
investments”
Source: compiled by authors.
Firstly, Article 401 of the Economic Code of Ukraine (Verkhovna Rada
of Ukraine, 2003) provides for the possibility to create special (free)
economic zones (SEZ), which can be of dierent types: free customs zones
and ports; export; transit zones; customs warehouses; technology parks;
technopolises; integrated production zones; tourist and recreational;
insurance; banking; etc. and combine functions inherent in dierent types
of SEZ.
In Ukraine, in the period from 1998 to 2005, such types of special
management regime as special economic zones and territories of priority
development functioned, which demonstrated a positive impact on the
economy of depressed regions of Ukraine. This is conrmed by gures and
examples of activities of a number of signicant enterprises in Ukraine. In
particular, investments of approximately USD 4.2 billion were attracted,
50709 new working places were created and 83 028 working placess were
preserved, 11.3 billion UAH were paid to the budgets of dierent levels
(Ministry of Economy of Ukraine, 2020).
Among the most signicant companies that implemented investment
projects under the special management regime in Ukraine, it makes sense
to highlight the following: plant rm of CARGILL (USA), which processed
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sunower and produced vegetable oil; «Knauf Gypsum Donbas» Limited
Liability Company, which implemented an investment project with an
investment volume of more than 50 million euros to create a modern
production of dry building mixtures and «Knauf» gypsum boards, and it
was with this project that «Knauf» company associated further prospects
for its development in Ukraine; taking advantage of the economic incentives
under the special management regime, world-famous companies worked
in Ukraine: Philips, Volkswagen, Audi, Skoda, Flextronics, Leoni, Yazaki,
Jebill, Henkel, Lego and others.
The analysis of the functioning of the special management regime in
Ukraine, in the period from 1998 to 2005, shows the following: incentives
were provided for investors, which had a positive impact on the investment
attractiveness of Ukraine and allowed to attract additional funds to the
economy of Ukraine; revenues to the budgets of dierent levels gradually
increased; new working places were created and existing ones were
preserved; it was possible to attract world-famous companies to the territory
of Ukraine; the creation of new and preservation of existing enterprises
allowed to launch a multiplier eect, i.e. with the growth of production
there was a corresponding increase in the costs of intermediate products,
then because of the costs of related industries there was an increase in
almost the entire economy.
At the same time, it should be noted that today the law that determined
the mechanism of creation and functioning of special economic zones in
Ukraine has lost its force. Thus, the rules of law on the creation of special
economic zones, which are provided by the legislation of Ukraine, are a
premise for the use of this legal instrument to solve the problems that exist
in the post-conict territories in Ukraine. At the same time, for the eective
functioning of this legal instrument it is necessary to develop and adopt a
mechanism for the practical application of special economic zones.
Special economic zones, as an important tool for attracting investments
and developing territories, have been successfully used in foreign practice
for a long time.
The experience of Poland is interesting, since the input parameters of
the introduction of special economic zones are similar to the Ukrainian
realities of economic development (the presence of depressed regions,
high unemployment, weak development of market relations). The special
economic zones of Poland provide for a dierentiated system of benets:
exemption of legal entities from corporate income tax until 2026, the amount
of tax preferences is 30-70% of the volume of investments made (depending
on the territory and scale of the business) or, optionally, compensation for
two years of expenses for the created workplace; exemption of individuals
from income tax; preferences can be provided on private territory, which
can be included in the special economic zone (SEZ, 2021).
658
Volodymyr Ustymenko, Olena Zeldina, Vladyslav Teremetskyi, Nataliia Herasymenko y Olesia Batryn
Legal Instruments for Solving Socio-Economic Problems in Buchanskyi district of Kyiv region:
International Experience and Legislation of Ukraine
It is worth mentioning that in Poland, as well as in Ukraine, the issue
of the destructive impact of the use of preferential nancial and credit
conditions as schemes for shadowing economic processes was actively
discussed. At the same time, the eectiveness of the functioning of special
economic zones in Poland is indicated by the economic positive eect:
an increase in the number of working places (in the areas where special
economic zones operate, unemployment is lower by 2-3 %, GDP is higher
by 7-8 % compared to other regions of the country); crisis regions have
been rebuilt; the volume of investments in 2005-2015 increased from 19.9
to 101.0 billion PLN, i.e., by 407 % (Barański et al., 2014). This allowed,
even after the expiration of the initial functioning of special economic zones
(until 2017), to continue at the legislative level the use of the potential of
special economic zones until 2026.
Of interest is the experience of Italy, where the depressed region is the
agrarian South, where live 40% of the country’s population and produces
more than 25% of total GDP. In order to stimulate investment activity
in depressed regions of Italy, legislation on special economic zones was
adopted in 2017-2018. The legislation provides three types of benets for
companies located in special economic zones (Dialti, 2018):
1. tax credit for companies that start their business activities or invest
in special areas consisting of harbours, airports and adjacent areas,
logistics platforms and marinas. The tax credit is equal to 20%
of the investment (limited to a maximum of 50 million EUR) for
small businesses, 15% for medium-sized businesses and 10% for
large companies, unless dierent rates apply in certain areas. The
tax credit can only be compensated at the expense of other tax
obligations;
2. accelerated procedures and terms for issuing permits;
3. reduced administrative fees.
Secondly, the Law of Ukraine “On the Principles of State Regional
Policy” in the editorial oce on 27.07.2022 (Verkhovna Rada of Ukraine,
2022) provides for the classication of regions and territories of Ukraine
into functional types for the purpose of planning recovery and introducing
special mechanisms and tools to stimulate the development of these
territories.
Thus, depending on the consequences of the destruction and according
to the indicators dened by the Cabinet of Ministers of Ukraine, 4 functional
types of territories have been identied:
• territories of recovery - territorial communities, micro-regions
where military actions were conducted or which were temporarily
occupied, suered destruction of infrastructure and housing stock
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as a result of military actions and have a sharp deterioration of
socio-economic development and signicant displacement of the
population to other regions or other states;
• regional growth poles - micro-regions, territorial communities
characterized by signicantly better geographical, demographic,
socio-economic indicators of development compared to other
similar territories of the region, and whose growth has a positive
impact on adjacent territories, the region and the state as a whole;
• territories with special conditions for development - macro-regions,
micro-regions, territorial communities, the level of socio-economic
development of which is low or where there is natural, demographic,
international, security or other objective restrictions on the use of
the territory’s potential for development;
• territories of sustainable development - self-sucient micro-
regions, territorial communities with existing socio-economic
potential of the territories and capable of balanced development in
the economic, social and environmental spheres.
Despite the fact that the legislation of Ukraine has established the
possibility of granting the status of “territory of recovery”, which provides
for the introduction of a special mechanism to stimulate its development,
this novella of Ukrainian legislation has not received proper lling. In
particular, the essence and procedure for introducing special mechanisms
to stimulate the restoration of the territories where military actions took
place and which suered destruction of infrastructure and housing are not
dened, there are no benets for investors and the possibility of insuring
military-political risks.
The analysis of the Ukrainian legislation shows that the legislator
provides for investment insurance as one of the types of guarantees of their
protection, but does not dene the mechanism of practical application of
this rule of law. As a result, investment insurance has not found proper
application in Ukraine. However, taking into account the military-political
situation, it is the insurance of military-political risks that should become
one of the key guarantees of investor protection. This will allow to oset the
risks of investors.
According to scientists, the legislator should provide for insurance
against the following military-political risks: loss of investments and
other property of the investor; physical damage to investments and other
property of the investor; change in the conditions of investment activity,
including the abolition of a special mechanism that makes it impossible for
the investor to full its obligations (Ustymenko et al, 2021).
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Volodymyr Ustymenko, Olena Zeldina, Vladyslav Teremetskyi, Nataliia Herasymenko y Olesia Batryn
Legal Instruments for Solving Socio-Economic Problems in Buchanskyi district of Kyiv region:
International Experience and Legislation of Ukraine
Thus, the current rules of law on granting the status of “territory of
recovery” are a premise for using this legal instrument to solve the problems
of post-conict territories in Ukraine, which includes Buchanskyi district of
Kyiv region. The lack of substantive content of such a legal instrument as
granting the status of “territory of recovery” makes it declarative and does
not allow its use in practice. Therefore, it is necessary to adopt a number of
legal acts that should establish a procedure for the introduction of special
mechanisms to stimulate the restoration of territories, provide preferential
treatment for investors and insurance of military-political risks.
Thirdly, the Cabinet of Ministers of Ukraine has prepared a draft law
of Ukraine “On Innovation Parks” (The Cabinet of Ministers of Ukraine,
2022), which introduces a comprehensive and systematic approach to the
activities of innovation parks as a tool for the development of the post-
conict economy of Ukraine in an innovative way.
Ukraine has legislation regulating the establishment and operation of
technology and science parks, which can be conditionally referred to as
“innovation parks”. Technology or science parks are quite common in the
world and contribute to the development of the economy. In particular,
Poland, Slovakia, Czech Republic, Romania pursues an active economic
policy through technology and science parks, creating the most favourable
conditions for investors who are able to bring innovative technologies and
create workings.
However, in a post-conict economy, new impulses should be given
to activate the mechanisms available in the legislation. Thus, without an
active economic policy that would launch the tools of innovation parks
at full capacity, it is dicult for Ukraine to reach a new level of economic
development.
The draft law “On Innovation Parks”, if nally adopted, will be able to
improve the legislation and systematize dierent types of parks into one
in the eld of innovation based on the best international practices. This
document denes the mechanism for state policy in the eld of innovation
development, support and stimulation of innovation activities by providing
state support to innovation parks, creating favourable conditions for the
activities of innovation parks. With the help of mentioned draft law, the
state will ensure eective interaction of elements of the national innovation
ecosystem, which can become the engine of accelerated economic growth of
post-conict territories.
Fourthly, the Cabinet of Ministers of Ukraine has prepared a draft law
“On Rapid Investments”, which provides for the simplication of permitting
procedures for acquiring land rights and for starting construction during
the implementation of projects aimed at economic recovery. This draft law
will soon be sent to the Verkhovna Rada of Ukraine (Ministry of Economy
of Ukraine, 2022).
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The draft law “On Rapid Investments” stipulates that during martial
law and during the reconstruction period, business entities implementing
projects included in the List of Economic Recovery Projects will receive
the most favourable conditions for investment, namely: reduction of the
terms for acquiring land rights - from 18 months to 3 months; the right to
a land plot will be acquired without an auction, without land management
documentation, with guarantees of non-alienation of the plot; the
establishment and change of the intended purpose of the land can be made
without observing the rules of correlation between the type of intended
purpose and the type of functional purpose of the territory; the design of
the construction object can take place without observing urban planning
conditions and restrictions, provided that it complies with building
regulations.
A restoration project will be considered a project that costs from 500
thousand euros and is aimed at any industry sector (except for waste
management and housing construction). To be included in the List of
Recovery Projects, a business entity must submit an application to the
Ministry of Economy.
These rules of law, if adopted, should become a premise for the use of such
a legal instrument as simplication of permitting procedures for acquiring
land rights and for beginning construction during the implementation of
projects aimed at economic recovery. These legal provisions also require
further improvement.
Conclusion
Based on the results of the analysis, the following conclusions can be
drawn:
1. The socio-economic situation in the Buchanskyi district of Kyiv
region after the military actions demonstrates the need for huge
nancial investments to restore the housing stock, social and
transport infrastructure, production enterprises, etc. Taking into
account that the budget of Ukraine does not have such resources, it
is possible to solve these problems by involving investment funds.
2. In order to involve investment funds, it is necessary to create an
attractive investment environment, which is possible with the help
of the following legal instruments: creation of special economic
zones, granting the status of the territory of recovery, creation of
an innovation park, simplication of permitting procedures for
acquiring land rights and for beginning construction in Buchanskyi
district of Kyiv region.
662
Volodymyr Ustymenko, Olena Zeldina, Vladyslav Teremetskyi, Nataliia Herasymenko y Olesia Batryn
Legal Instruments for Solving Socio-Economic Problems in Buchanskyi district of Kyiv region:
International Experience and Legislation of Ukraine
3. The positive experience of functioning of special economic zones
in foreign countries (Poland, Italy, etc.), as well as in Ukraine,
demonstrates that the creation of favorable conditions for investors
is an eective mechanism for involving investors and attracting
investment funds.
4. The introduction of a dierentiated system of incentives for
investors at the legislative level, depending on the tasks to be solved
in a particular territorial community, insurance of military-political
risks will lead to a signicant increase in investment capital inows
to Buchanskyi district of Kyiv region.
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Esta revista fue editada en formato digital y publicada
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