EU-LEAP Training in Ivano-Frankivsk: Law No. 4196

Western Ukraine has joined the large-scale process of transforming the communal property sector. The next regional practical intensive, aimed at explaining the logic and implementation mechanisms of the Euro-integration Law No. 4196-IX, took place in Ivano-Frankivsk.

The training brought together 60 participants — community leaders, representatives of local self-government bodies (LSGs), and heads of municipal enterprises (MEs), who came to master new market-based management tools.

Organizational and expert support for the event was provided by the EU-LEAP analytical center, the Community of Registrars of Ukraine, and the All-Ukrainian Association of Amalgamated Territorial Communities, with the active participation of the Verkhovna Rada of Ukraine Committee on Economic Development and the support of JTI Ukraine.

The philosophy of the law: the market "vibe" and capitalization of communities

Opening the event, People's Deputy of Ukraine and Deputy Chair of the Committee on Economic Development Oleksii Movchan urged those present not to perceive the reform as bureaucratic pressure, but to see real economic benefits in it:

"We are moving toward the European Union and OECD standards, which require best practices in managing companies, communities, and our communal property. There's no need to fear corporatization — it's a completely market-based mechanism, and Law No. 4196 clearly sets out the procedure for this transition.

The main advantage of the reform for communities is the ability to attract significantly more resources: private capital, donor assistance, credit funds, or debt capital through bonds and loans. At the same time, corporatization increases accountability. A municipal enterprise stops being 'ownerless property' belonging to an ephemeral community. Specific people appear who are responsible for financial reporting and the final result. This law is about market principles in managing the communal economy, and I want you to feel this market vibe. A big advantage is that, unlike constantly updated procurement rules, this reform needs to be implemented only once: we all learn once, corporatize, and then continue to calmly live and manage modern enterprises."

From online to live discussion: eliminating Soviet-era relics

The reform provides for the systematic transformation of municipal enterprises into limited liability companies or joint-stock companies. Deputy Executive Director of the All-Ukrainian Association of Amalgamated Territorial Communities Serhii Sharshov emphasized that this step will finally eliminate the Soviet system of property management:

"We felt the buzz around this topic back at the end of last year, when our Association held a series of webinars that reached about 2,000 LSG officials and ME representatives. We developed a huge database of video materials, presentations, and clarifications on the most painful issues of the reform.

Today I sincerely thank the Verkhovna Rada's Economic Committee, the Ministry of Economy, the Ministry for Development, and the EU-LEAP team, who helped move this training from online to offline format. We see the huge demand from communities directly in the number of participants and the activity of discussions. I wish everyone that after the training you have fewer questions and more clarity. At the same time, it's extremely important to remember: during the transformation of enterprises, we must not lose the quality of services. On the contrary — the reform is meant to make services for residents more accessible and higher quality."

Practical toolkit: legal and land-related aspects of transformation

After the official part, the training moved into a detailed legal workshop format. Leading experts and lecturers from the Community of Registrars of Ukraine worked through with participants the algorithms needed to avoid mistakes during the transition period:

The new logic of property rights: a detailed analysis of the legal regime of usufruct, which fully replaces the outdated concepts of operational management and economic jurisdiction;

Error-free registration actions: a step-by-step algorithm for terminating a municipal enterprise through reorganization and creating new business entities (LLC/JSC);

Audit and legal succession: rules for drawing up inventory and transfer acts, verification of LSG decisions;

Land block: preserving reformed enterprises' rights to land plots, procedures for formalizing permanent use and lease.

The Ivano-Frankivsk intensive demonstrated that western communities are ready to quickly integrate into the new economic model. Clear methodological explanations and synergy between central government, municipal associations, and experts minimize any regulatory risks and open the way for communities to attract European investment.

The large-scale reform marathon continues!