LAND MARKET IN UKRAINE - WHAT WILL HAPPEN TO UKRAINIAN LAND IN THE NEXT FEW YEARS?

The draft law "On Amending Certain Legislative Acts of Ukraine Concerning the Turnover of Agricultural Land" can rightfully be considered one of the most controversial and controversial draft laws in the history of Ukraine. Given a number of conflicts caused by protests, subsequent amendments and changes, the Verkhovna Rada of Ukraine decided to open a land market on July 1, 2021 with all the ensuing consequences. What will this mean for Ukrainians and what are the consequences of adopting such a draft law? Let us try to answer this question thesis in our article.
1. From July 1, 2021, the moratorium on the sale of agricultural land is canceled. Despite this, the law prohibits the sale of agricultural land for state and municipal property, subject to certain exceptions. It is also worth taking into account that until January 1, 2030, the selling price of agricultural land plots allocated in kind (on the ground) to owners of land shares (units) cannot be less than their standard monetary value. At the same time, all calculations related to the purchase and sale of agricultural land should be carried out in non-cash form, with confirmation of the sources of funds or other assets from which the land is acquired.
2. Regarding the ownership rights of legal entities and individuals:
2.1. From the moment the market opens and until January 1, 2024, only individuals - Ukrainian citizens will have the right to purchase land. During this period, a restriction of 100 hectares of agricultural land that can be bought by one citizen will apply to all citizens. At the same time, this restriction will not apply to land acquired by a citizen prior to the entry into force of this norm. After January 1, 2024, the maximum land area for one citizen will increase to 10 thousand hectares. In addition to the private property of a citizen, this restriction also includes the area of land that is owned by a legal entity, the owner of corporate rights of which is the same citizen. The law also provides for the tenant's preemptive right to purchase land, but it is not prohibited to alienate such a right to other persons.
2.2. As for legal entities, the law establishes a ban on legal ownership of land for agricultural commodity production, land allocated in kind to owners of land shares for personal farming, as well as land shares (units) until January 1, 2024 . It is worth noting that the law enshrines the rule according to which all agreements and powers of attorney, preliminary contracts for the sale and other alienation of land in the future, concluded during the period of the ban, are invalid from the moment of their conclusion.
3. The most exciting issue remains the right of foreigners and foreign companies to acquire agricultural land in Ukraine. The law governs such relationships as follows:

the issue of the right of foreigners and foreign companies to acquire agricultural land ownership will be decided solely by referendum.

Despite the results of the referendum, bans and restrictions on the acquisition of agricultural land as property were also established:

to foreigners (regarding land located closer than 50 km from the state border of Ukraine);
foreigners belonging to terrorist organizations or aggressor countries;
legal entities whose ultimate beneficiaries are foreign states;
legal entities for which it is not possible to establish the ultimate beneficiary.
individuals and legal entities that fall under the scope of the Law “On Sanctions”.
legal entities whose ultimate beneficiaries are registered in states that do not cooperate in the field of combating the laundering of proceeds from crime.

Thus, the most exciting draft law leaves behind a number of issues and unaccepted by-laws, which should bring absolute clarity and transparency to the procedures for the alienation of agricultural land.