Green light for the land reform in Ukraine
On March 31, 2020, the Parliament of Ukraine has adopted the law enabling the land reform to finally start.
The new land law[[1]](https://www.integrites.com/publications/green-light-for-the-land-reform-in-ukraine/#_ftn1):
- Comes into force[[2]](https://www.integrites.com/publications/green-light-for-the-land-reform-in-ukraine/#_ftn2) on 1 July 2021
- De facto cancels the moratorium on the alienation of agricultural lands
Who will be permitted to purchase agricultural lands (“Lands”)?
Lands may not be owned by:
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Entities with Foreign Participation with respect to Lands which are allocated as land shares and located closer than 50 km from the state border (except for sea border) | |
Entities or Entities with Foreign Participation whose UBOs can not be identified |
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Entities with Foreign Participation whose shareholders are citizens of any country, which is qualified by the Ukrainian Government as an aggressor against Ukraine | |
Entities with Foreign Participation which are controlled by individuals/legal entities registered in countries, included in the FATF’s list |
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Entities with Foreign Participation whose shareholders or UBOs are foreign states | |
Individuals who are (or were) members of terrorist organisations |
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Entities with Foreign Participation whose UBOs are registered in offshored | |
Individuals, Entities or Entities with Foreign Participation who are subject to sanctions set by the Ukrainian Government |
! All lands (including agricultural) located in the temporarily occupied areas of Donetsk and Lugansk regions and the Crimea, may not be sold/purchased/allocated (except for the transfer of title in case of inheritance)
Other novelties
► The pre-emptive right on purchase of Lands will become transferrable (i.e. a lessee will be able to transfer their pre-emptive right on purchase of the leased Lands to a third party);
► Courts will be enabled to seize Lands, if:
- an owner has not disposed of its Lands within 1 year upon acquisition in cases when they were obliged to do so
- the total area of all Lands in ownership exceeds the maximum permitted by law
[[1]](https://www.integrites.com/publications/green-light-for-the-land-reform-in-ukraine/#_ftnref1) The Law of Ukraine “On Introduction of Certain Changes to Laws of Ukraine on Conditions of Turnover of Agricultural Lands” No. 2178-10
[[2]](https://www.integrites.com/publications/green-light-for-the-land-reform-in-ukraine/#_ftnref2) The final text of the Law is yet to be officially published, its main provisions outlined in this alert have are based on the publicly available information
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