The moratorium on the sale of agricultural land was lifted
The acquisition of land in Ukraine by individuals will be possible from July 1, 2021. For legal entities, the agricultural land market will be open in 2024.
It happened! The Verkhovna Rada of Ukraine on the night of Tuesday, March 31, in the second reading adopted a law on the abolition of the moratorium on the sale of agricultural land from July 1, 2021.
259 deputies supported the bill, 209 of them were members of the Servant of the People party of President of Ukraine Vladimir Zelensky. In addition, parliamentarians from the European Solidarity, Golos and Dovira groups supported the initiative.
Politicians call this event historical, but experts believe it is too early to rejoice, since the land market in Ukraine will operate with significant restrictions.
New Law on the sale of land in Ukraine
From July 1, 2021 until 2024, only individuals can buy land. The area acquired by one buyer in this case should not exceed 100 hectares.
Since 2024, legal entities will be able to buy agricultural land in Ukraine. The limit of the area of land acquired by one buyer will be increased to 10,000 hectares.
Important! Privatization of state agricultural land will be prohibited. It is also prohibited to sell state-owned land. That is what the European Solidarity faction insisted on and promised to vote for the bill only on the condition that a moratorium be imposed on the sale of state land. Banks will not be able to buy land, but they may be owners of land within the collection of collateral. Such sites should be alienated from the bank at auction within two years. The selling price of agricultural plots cannot be lower than their normative monetary value. This norm will be valid until January 1, 2030.
As for the possibility of buying land in Ukraine by foreigners, this issue will have to be resolved in a referendum. At the same time, foreign citizens are prohibited from buying land in the 50-km zone from the state border of Ukraine, regardless of the decision of the referendum.
The prohibition also applies to companies whose shareholders or ultimate beneficiaries are foreign states, as well as if it is not possible to establish the beneficial owner of the company. They will not have the right to purchase Ukrainian land and companies whose beneficiaries are registered in offshore zones, as well as companies from countries that do not cooperate in the field of combating money laundering, and companies under sanctions.
According to many politicians, the issue of selling land to foreigners is very dangerous. Some experts believe that if the sale of agricultural land to foreigners becomes a reality, it can lead to terrifying protests, which can lead to the collapse of the state and the emergence of new Ukrainian proto-states. Such a scenario would not have been formally acceptable to most of the world's leading politicians.