Ukraine launches land market reform.

Here is what you have to know about the land market reform in Ukraine:

On 31 March 2020 the Parliament of Ukraine adopted a law (draft No. 2178-10) which puts an end to the moratorium of agriculture land sale.

Land market reform has been a no-go area for all governments and parliaments since 1991. Putting the long-awaited land reform into motion, the Ukrainian authorities have proved again their commitment to ambitious modernization agenda.

We expect that the launch of the land market will improve the business climate in Ukraine and our attractiveness for foreign investments.

The land market will be based on the rule of law and the principles of sustainability, transparency, fairness and inclusiveness.

Key elements of the land reform:

1. Abolishment of the moratorium of agriculture land sale from 1 July 2021 
2. The limit of land in one’s hands is established at 10 000 hectares.
3. However, during a transitional period which will last until 1 January 2024:
   a) the amount of land in one’s hands is limited to 100 hectares;
   b) land can be owned only by individuals;
   c) legal entities are banned from buying land;
   d) sale of state land is prohibited;
4. Until 2030 the minimum price shall be not less than a normative value.
5. All payments shall be cashless. Proof of a valid source of income shall be required.
6. Any transfer of property rights on land located within temporary occupied territories (Crimea, the relevant parts of the Luhansk and Donetsk regions) is prohibited, except the cases of inheriting.
7. The land lessee will have a pre-emptive right to buy land. The land lessees who work on the land and had the right to use it before 2010 can buy land with installment payments up to 10 years at a normative price and off a tender. The buyer shall acquire the ownership right already after the first payment. The land lessee will have an option to transfer this pre-emptive right to another person but the owner must be notified in writing thereof.
8. The land ownership for foreigners will be allowed only after a referendum.
9. The companies whose owners are citizens of the aggressor country – the Russian Federation are banned from acquiring Ukrainian land. The ban also extends to members of terrorist organizations, companies owned by foreign states or offshore companies or whose beneficiaries cannot be identified. Legal entities from countries that do not cooperate in combating money laundering as well as from sanctioned companies will also not be able to buy Ukrainian agricultural land.

https://bit.ly/2xVwINO