2021-07-01T14:05:00+03:00 Economy 2024-09-15T08:38:08+03:00

Ukrainian news

Law On Farmland Market Opening Takes Effect

Law On Farmland Market Opening Takes Effect

The Law of Ukraine that provides for the cancelation of the moratorium on farmland sale took effect today, July 1.

That follows from Law 552-IX text, Ukrainian News Agency reports.

In compliance with the document the right to acquire farmlands belongs to Ukrainian citizens, Ukrainian legal entities, whose members and stockholders are Ukrainian citizens only, territorial communities, and the state.

At the same time, Ukrainian citizens can buy a land plot with an area of up to 100 hectares until January 1, 2024.

In turn, until then, the law bans purchase and sale or other alienation in favor of legal entities of land plots in private ownership and plots used in farm production.

The exception is their use as collateral by banks.

After January 1, 2024, the overall area of farmlands possessed by a citizen or a legal entity cannot exceed 10,000 hectares.

Foreigners cannot acquire a share in the statutory fund, shares, or membership of legal entities (except those in the statutory fund of banks) that own farmland plots until otherwise is decided by Ukrainian citizens at the respective referendum.

Besides, the law bans the sale of state- and community-owned lands.

Until January 1, 2030, the price of land plots allocated to owners of land shares cannot be lower than their standard monetary value.

As Ukrainian News Agency earlier reported, on March 31, 2020, the Verkhovna Rada canceled the moratorium on the sale of farmlands from July 2021.

On November 13, 2019, the Verkhovna Rada adopted the first reading of the bill that provided for such cancellation from October 1, 2020.