Several months have passed since the extraordinary session of the Ukrainian parliament, which adopted the bill № 2178-10 on the abolition of the moratorium on the sale of agricultural land. The new law signed by the Chairman of the Verkhovna Rada of Ukraine is already on the President’s desk, waiting for the culmination of the visa. It is this moment that allows us to take a breath from the sleepless night of parliamentarians and the endless flow of news about it and in a quiet, cozy atmosphere to summarize the content of the new rules of land legislation.
The agricultural land market will open gradually:
1) by October 2020, the government must develop and approve the procedure for providing financial support to citizens and legal entities of Ukraine (including farms) for the purchase of agricultural land;
2) from July 1, 2021 to January 1, 2024, a special market will operate, according to the rules of which only citizens of Ukraine will be able to acquire ownership of agricultural land. In this case, the total area of land per person may not exceed 100 hectares, and violation of such a restriction will entail confiscation of land by court decision;
3) from January 1, 2024 to the number of entities that will be able to buy agricultural land will be added legal entities of Ukraine, created and registered under the laws of Ukraine, participants (shareholders, members) of which are only citizens of Ukraine and / or state, and / or territorial communities. At the same time, a limit will be set for both citizens and legal entities of Ukraine – no more than ten thousand hectares per person.
A feature of the innovations is the prospect of granting the right to purchase agricultural land to foreign persons through legal entities of Ukraine. However, this issue must be decided in a referendum.
TEFFI Law Firm expects that the lifting of the moratorium will not only fill the “dead capital” in the form of agricultural land with life, but will also open the way for new opportunities for Ukrainian agrarian business and, in the future, for foreign investors.