Ukraine. Bill on opening the farmland market introduced into Parliament

20.12.2016

Bill No. 5535 “On farmland transactions” was registered in Parliament late last week.

The document provides for permission to buy, sell farmland or alienate it in other way. It is supposed to become effective from July 1, 2017 for state-owned and communal land and from July 1, 2018 for private land.

Besides, it is planned to stipulate that only individuals with Ukrainian citizenship, territorial communities and the state can be beneficiaries of farmland transactions until January 1, 2020. Legal entities would be allowed to sell or purchase farmland from January 1, 2020 and foreigners from January 1, 2030.

The document also contains a clause stating that the sale or purchase of land can only be made through electronic land bidding and at a price not lower than the standard land evaluation (in other place of the document it is set out as at least 20 annual lease payments).

In the opinion of UkrAgroConsult, the document was evidently drawn up in a rush because discrepancies occur in its text (for example, about the bottom price for land) and it contains no substantiation of the set dates for opening the private land market and accessing legal entities and foreigners to the market.

Full version of the article is available to subscribers for weekly market report “AgriNews, Kyiv” and “Online market review” by UkrAgroConsult.

 

UkrAgroConsult

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