Ukraine to open land market
On March 31, the Parliament of Ukraine has voted for the Law on Land Market Turnover. Further steps will be approval of the number of draft laws that will support its implementation.
Main provisions of the new law on land market in brief:
1. From June 2021, the moratorium on the sale of agricultural land is abolished.
2. From June 2021 until June 2023, restrictions on land purchases will apply - no more than 100 hectares at a time. From 2023, the limit will be up to 10 thousand hectares in one hand, as foreseen by the previous version of the project.
3. From 2021 to 2023, the right to buy land will be for natural persons only. Legal entities are not allowed to buy agricultural land.
4. Regarding the right for foreigners to buy land - the issue will be resolved at a referendum.
5. Foreigners will not be allowed to buy land closer to 50 km from the state border of Ukraine, despite the results of the referendum.
6. From 2023, the companies that are owned by the citizens of Russia, or members of terrorist organizations, will not be able to buy the Ukrainian land. The ban also extends to companies owned by foreign states or offshore companies or beneficiaries that cannot be disclosed. Legal entities from countries that do not cooperate in combating money laundering and sanctioned companies will also not be able to buy Ukrainian agricultural land.
7. Assumed pre-emptive right of the tenant to purchase. Tenants who work on land and have the right to use it since 2010, can buy land with installments of up to 10 years at the price of a regulatory monetary valuation of such sites and without holding land auctions. The buyer receives the ownership right after the first payment. The tenant has the opportunity to transfer the pre-emptive right to purchase the land to another person, but the owner must be notified in writing.
8. Banks will be able to become owners of the land only if the land was given to them as collateral on the loan. Such plots of financial institution are to be sold within two years after obtaining ownership of land auctions.
9. The minimum price is at least a regulatory monetary valuation until 2030.
10. In the first two years will be a ban on the sale of state land.