Ukraine's Parliament has passed the 2008 national budget in two parts: the budget itself and changes to existing tax, social, and real estate laws. In general, about 100 laws were amended, and will be implemented throughout this year.

The Ukrainian property legislation amendments deserve special attention from lawyers, economists, and investors, considering the property market's central role in Ukraine's fast-growing economy. It appears as no surprise that huge foreign investment companies and private investors view the property in Ukraine market as being risky and volatile primarily due to non-transparency of laws governing property ownership.

The new propositions were made to the main legal statutes that have regulated the real estate market in Ukraine since independence.

The first main propositions established new legal status for state privatization authorities - the State Property Fund and its regional departments and representative offices - and the State Agency for Land Resources. Both agencies are now considered as legitimate subjects responsible for assigning and designating land.

The State Agency for Ukrainian land Resources is explicitly entitled to sell agricultural land in Ukraine, except for land owned by individuals and so-called "legal entities," as well as land for privatization.

As for state privatization power, it is appointed to sell land for privatization, and land belonging to state companies (including companies with state-owned shares, as well as incomplete and inactive construction sites). Cabinet of Ministers approval is required in selling state-owned land for privatization to foreign legal entities and governments.

Another novelty can be brought to the provisions for leasing municipal lands and state-owned lands. Under the land code's previous provisions, renting rights for municipally and state-owned lands could be secured in auctions or competitions. The law now permits the granting of leasing rights through auctions. The law now includes all municipality and state-owned lots and ensures that every tract of privatized land is subject to competitive bidding. This ensures that the preliminary price for land sales may be no less than the average price in a given locality. Proceeds will now be transported to state or local budgets. This will have an immediate positive response on state and municipal land transactions by heightening transparency and reducing corruption.

Propositions also increased the taxes and duties on real estate in Ukraine and leased lands. The land tax was increased fivefold while the maximum allowable rent charged for leased land was increased.

In general, the propositions introduced did not take into account the real demands and expectations of the present and potential property for sale market participants. The new laws do not considerably change the rules of Ukraine's property market. Most likely, the adoption of relevant modifications is the result of political will and internal agreements reached between Ukraine's main political parties. The propositions' duration - one year - illustrates their limited effectiveness.