Ukraine may lift moratorium on sale of state-owned agricultural land in 2017

ukraine agriculture - sale of agricultural land

This article discusses the recently adopted #action plan of the #Cabinet of Ministers of Ukraine under which it is provided for #lifting of moratorium on #sale of agricultural land starting from 2017.

Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.

The Cabinet of Ministers of Ukraine published its action plan for 2016. The document includes 379 positions grouped in four sections, namely ‘Independent European state’, ‘Decentralization as strategy of national development’, ‘Care for everyone’ and ‘Favourable conditions for doing business’.

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. According to the action plan of the Cabinet of Ministers of Ukraine, such measure will allow to establish a fully functioning market of agricultural land upon lifting of moratorium on sale of such land.

We note that the moratorium on sale of agricultural land in Ukraine has been introduced in 2002. In November 2015 the effect of the moratorium was prolonged until 1 January 2017.

The law stipulates that until the law regulating turnover of agricultural land comes into force, but in any event not earlier than 1 January 2017, 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.

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