Alona Lebedieva: The Law on Bona Fide Acquirers Is a Crucial Step Toward Legal and Investment Stability

KYIV, UKRAINE, April 17, 2025 /EINPresswire.com/ -- President of Ukraine Volodymyr Zelenskyy has signed Law No. 12089, which strengthens the protection of the rights of bona fide acquirers of property. In particular, property can no longer be reclaimed from a bona fide acquirer if more than 10 years have passed since the registration of ownership in the State Register of Property Rights or since the transfer of state or municipal property into private ownership. The Verkhovna Rada adopted the law on March 13, and its core provisions have long been advocated for by the Ukrainian business community.

What do the changes entail?

The key innovation lies in resolving a long-standing legal inconsistency: previously, responsibility for errors made by state authorities or improper preparation of assets for privatization was often placed on bona fide acquirers.

Now, the state or local government is granted a reasonable timeframe—specifically, 10 years—to identify and correct such errors. After this period, no “sudden revelations” will be possible.

This law became necessary because, despite the existing statutory limitation period of three years, Ukrainian courts have regularly considered legal claims concerning real estate—most often land plots—related to events that occurred 20 or even 30 years ago.

This reform puts an end to the practice of shifting responsibility for past governmental mistakes onto bona fide acquirers.

The new provisions do not apply to critical infrastructure assets, strategically designated lands, cultural heritage sites, or protected natural areas. The law exclusively aims to protect the rights of bona fide acquirers—those who acted in accordance with current legislation and had no reason to doubt the legality of the transaction.

Business position: “This is a law about fairness”

Alona Lebedieva, owner of the Ukrainian industrial and investment group Aurum Group, emphasizes the significance of this step. According to her, the law is not just a technical adjustment but a signal that Ukraine is beginning to build systemic respect for fundamental economic rights.

“This is a story about justice. For years, we’ve operated in an environment where the state could ‘change its mind’ 10, 20, or even 30 years later and call property rights into question. That’s not only unfair—it’s dangerous for the investment climate. Now we’re seeing a clear signal: if you didn’t break the law, if you acquired land or property transparently, your ownership is protected,” Lebedieva asserts.

She places special emphasis on the shift in responsibility from entrepreneurs to the authorities who made the mistakes:

“When the state suddenly recalls a technical conflict from 20 years ago and shifts its consequences onto businesses—that destroys trust in the government.”

Lebedieva highlights that the law serves the interests of those who acted in good faith:

“It doesn’t protect fraudsters. If you were part of a ‘scheme’ or knew the grounds for acquisition were dubious—don’t expect this law to shield you. But if you acted honestly and within the law, and the state raised no objections—your rights cannot be retroactively questioned.”

Why does this matter?

Ukrainian businesses have long complained that no transaction ever felt truly final. Law enforcement agencies or government bodies could revisit cases from the 1990s and demand the reversal of long-settled agreements.

According to Lebedieva, the new law has the potential to change that: “There must be a limit. If the state hasn’t verified or challenged something in 10 years, then it’s not the bona fide investor’s problem.”

The law is also aligned with the case law of the European Court of Human Rights, which has repeatedly emphasized that individuals and entrepreneurs acting lawfully and in good faith should not be held liable for the negligence or errors of the authorities.

Alona Lebedieva
Aurum Group
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