Ukraine passes law on launch of farmland market from July 2021

Open source

The Verkhovna Rada adopted the law on the turnover of agricultural land, which introduces the farmland market in Ukraine from July 1, 2021.

The bill “On amending certain legislative acts of Ukraine on the turnover of agricultural land” was backed 259 people’s deputies in the second reading, with the required minimum of 226 votes.

According to the head of the Parliamentary Committee on Agrarian and Land Policy Mykola Solsky, “were taken into account the changes proposed by the president – input phasing, land purchases shall be limited to 100 ha per buyer by July 2021, access for legal entities to the land market since 2024.”

The comparative table for the second reading of the bill indicates that only individuals who are citizens of Ukraine shall be able to buy land until January 1, 2024, but no more than 100 ha.

From January 1, 2024, Ukrainian legal entities (registered in Ukraine and whose participants are citizens of Ukraine) shall be allowed to buy land, but no more than 10,000 ha.

It is prohibited to sell land to foreigners, legal entities with foreign shareholders and legal entities whose beneficiaries cannot be identified or whose beneficiaries are registered in offshore zones, or to sanctioned persons (special economic or other sanctions).

Moreover, the law prohibits the sale of agricultural lands of state and communal ownership.

In addition, only non-cash payments for agricultural land allowed.

The law also instructs the Cabinet of Ministers, within six months from the date of publication, to develop and approve the procedure for financial support for citizens and legal entities (including farms) for the purchase of agricultural land, as well as to amend the budget for the creation of the Rural Development Fund.

Honcharuk: Law on farmland market is a signal to whole world that Ukraine is ready to play by rules

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