Moratorium for purchasing and selling of agricultural land was prolonged till January, 1 2018

11.10.2016

Such decision was made by Ukrainian parliament last week. By this document the moratorium for purchasing and selling of agricultural land or for other way of land`s alienation will remain effective until further regulations on the governmental level will be adopted, but no earlier than January, 1 2018.

According to UkrAgroConsult, adoption of decision on land issue had not been expected to be put under consideration so soon, but on Wednesday, October 5 the text of memorandum with IMF was published, where Ukrainian commitments on the land market introduction were stipulated, together with cancellation of special tax regime, etc., which speeded up consideration of the moratorium issue.

Though, prolongation of moratorium does not exclude the chance for emphyteusis` consideration, as an alternative for agricultural land market and for draft bill on market of leasehold rights.

Some experts say that emphyteusis is more complete than lease agreement, as de-facto there are already many of such agreements in Ukraine and representatives of bank sector have interest in them as in a reliable mechanism to issue credits for agro producers.

The date of draft bill consideration is being discussed.

 

UkrAgroConsult

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