Back in May, we could not guess that the new president would start the process of writing the future law and discussing this reform so quickly. The former comedian did not even think of joking, when he dissolved the parliament. Immediately after the early elections, Zelensky ordered the team to start working on the text of the new land law, using the mono-majority in parliament. The law was published on the website of the Rada, Ukrainian parliament, on October 7th .
There are the 5 main provisions of the law:
Let’s start with the most important. The ban on the alienation of agricultural land of all forms of ownership will be lifted on October 1, 2020.
The second vital point concerns land acquisition rights. So who can buy land? The law turned out to be quite liberal. The citizens of Ukraine, territorial communities, the state and Ukrainian legal entities will be able to acquire the right of ownership. The foreign citizens and stateless persons will not be able to buy land, but will have the right to inherit it. However, they will be obliged to sell it within a year.
Land will only be sold through electronic auctions where a minimum starting selling price will be set.
In addition, a restriction will be established on the purchased land area. So, one owner and persons connected with him cannot possess more than 15% of the agricultural land of the region and 0.5% of the agricultural land of Ukraine.
It is logical that the tenant will have the priority right to purchase land. The authorities also promise to develop an affordable bank credit and deferred payment system. The project also includes the introduction of a new sanction “ban on the acquisition of land.”
In conclusion, what does the opening of the land market in Ukraine mean? Ukraine occupies a leading position in the world in terms of fertile soil and agricultural exports, but it is far from its full realization of its potential. With the land reform, we can expect even greater development of agriculture and the country’s economy.
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