MORATORIUM ON SALE OF AGRICULTURAL LAND IS LIFTED IN UKRAINE
On April 28, 2020, the President of Ukraine signed the Law of Ukraine “On Amendments to Some Certain Legislative Acts of Ukraine Regarding the Turnover of Agricultural Land” (No 552-IX) which the Verkhovna Rada adopted on March 31, 2020.
The main provisions of the adopted bill include:
- The opening of the land market is scheduled for July 1, 2021.
- Until January 1, 2024, only individuals who are Ukrainian citizens will be eligible to buy land.
- The sale of land in one hand in the first two years after the start of the land reform is limited to 100 hectares.
- As of January 1, 2024, Ukrainian legal entities will be allowed to buy land at a concentration of no more than 10 thousand hectares (There is no restriction of 10.000 ha of agricultural land for Banks).
- Admission of foreigners to the purchase of land on the territory of Ukraine will be possible only after the relevant decision is taken through a national referendum.
- Agricultural lands of state and communal property will not be sold.
- Payment for the purchase of plots will be made only in noncash transfers.
- A land plot can be bought exclusively with a cash-free payment with verification of the origin of funds.
- Banks may own land plots within the limits of collateral; such plots should be disposed through the auction within two years.
- Legal entities, whose members are citizens of the aggressor state, individuals against whom sanctions are imposed are prohibited to purchase land, even if a referendum is held.
- Foreign citizens are forbidden to purchase land in the 50 km zone from the state border of Ukraine, regardless of the decision adopted through the referendum.
- The sale price of agricultural land plots cannot be lower than their normative monetary valuation; such a standard will be in effect until January 1, 2030.