As it is indicated in the comparative table before the second reading of the bill, only natural persons-citizens of Ukraine will be able to acquire ownership of agricultural land from July 1, 2021. In this case, the concentration of one individual should not exceed 100 hectares.
Starting from January 1, 2024, legal entities (registered in Ukraine and members of which are citizens of Ukraine) will be able to buy agricultural lands, the concentration of which will be up to 10 thousand hectares.
It is prohibited to sell land to foreigners, legal entities with foreign shareholders and legal entities whose beneficiaries cannot be established or whose beneficiaries are registered in offshore zones, as well as to persons subject to special economic and other sanctions.
Accordingly, Articles 130 and 131 of the Land Code of Ukraine are revised. Let's take a closer look.
Thus, under the new wording of Article 130, ownership of agricultural land may be acquired by the following:
a) citizens of Ukraine;
b) legal entities of Ukraine, created and registered under the legislation of Ukraine, participants (shareholders, members) of which are only citizens of Ukraine and / or the state, and / or territorial communities;
c) territorial communities;
d) the state.
Ownership of agricultural land may also be acquired by banks only in the case of foreclosure on them as collateral. Such land plots must be alienated by the banks in land auctions within two years from the date of acquisition of ownership.
Foreigners, stateless persons and legal entities are prohibited from acquiring shares in the authorized (compound) capital, shares, units, membership in legal entities (except in the authorized (compound) capital of banks) that are owners of agricultural land (this paragraph loses its validity conditions and from the date of approval in the referendum of the decision set out in paragraph eight of part one of this Article).
Acquisition of ownership of agricultural land by legal entities created and registered under the legislation of Ukraine, participants (founders) or ultimate beneficial owners (controllers) of which are persons who are not citizens of Ukraine, may be exercised from the date and subject to approval in a referendum.
What are the features of the calculation?
Calculations related to the payment of the price of agricultural land under civil agreements are made in cashless form.
Acquisition of the right of ownership of agricultural land under repayment contracts shall not be allowed in the absence of documents of the purchaser confirming the sources of origin of the funds or other assets at the expense of which such right is acquired.
The sale of agricultural land of state and communal ownership is prohibited.
We remind that the bill "On Amendments to Some Legislative Acts on the Circulation of Agricultural Lands" (No. 2178-10) The Verkhovna Rada adopted in first reading on November 13, 2019. The law shall enter into force on July 1, 2021, except for paragraph 2 of this section, which shall enter into force on the day of the publication of this Law.
It should be noted that according to the World Bank forecasts, the opening of the agricultural land market could bring an additional $ 700 million to $ 1.5 billion annually to the Ukrainian economy.
