Ukraine prolongs moratorium on sale of agricultural land until 2018

Invest in Ukraine, Ukraine agriculture: moratorium on sale of agricultural land prolonged

This article discusses the recently adopted law which prolongs the effect of the #existing #moratorium on #sale of #agricultural land for at least another year.

Visit our website if you are interested in the #Ukrainian_economy or #doing_business in Ukraine.

Such move of the Ukrainian Parliament is backed by the notion of the need to design proper regulation for the land market and respective turnover of agricultural land.

We note that the moratorium on sale of agricultural land in Ukraine has been introduced in 2002.

The law stipulates that until the law regulating turnover of agricultural land comes into force, but in any event not earlier than 1 January 2018, it is prohibited to:

  • sell state-owned and municipal land plots designated for agricultural use, except for the withdrawal (buy-out) of such land plots for public needs;
  • sell and purchase or otherwise alienate agricultural land plots or change the designation of agricultural land plots owned by individuals or legal entities for agricultural commodity production, for individual farming, except for inheritance, for barter one land plot to another and for withdrawal (buy-out) of such land plots for public needs, and other than changing the designation of land for the purpose of providing to investors-participants of the production sharing agreements for activities under such agreements.

Any agreements (including powers of attorney) concluded under the effective prohibition in the part of sale, purchase or other alienation of agricultural land plots and similarly in the part of transfer of the rights for future alienation of these land plots shall be null and void from the time of conclusion thereof.

We note that earlier the Cabinet of Ministers of Ukraine published its action plan for 2016. One of the most notable positions within the published action plan is development of a draft law which will allow sale of state-owned agricultural land from 1 January 2017. In addition, such draft law will allow sale of privately owned agricultural land from 1 January 2019.

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