Land market open, sale ban canceled, IMF hopes for an installment
Verkhovna Rada adopted a bill to open the land market on the night of 30 to 31 March. During an extraordinary meeting of Verkhovna Rada on 30 March, Bill No. 2178-10 was supported by 259 deputies on “Amending some Legislative Acts of Ukraine on the business of agricultural land”.
In the future, Parliament will need to adopt a number of additional documents of the so-called “land package”, in which the relationship between participants in the land market will also be partially abolished.
So far, by law, since June 2021, the ban on the sale of agricultural land has been repealed. The new law also provides:
- There will be a ban on the purchase of land from June 2021 to June 2023 – no more than 100 hectares in one hand. From 2023, the limit will be up to 10 thousand hectares in one hand, as provided in the initial version of the project.
- From 2021 to 2023, only individuals will have the right to purchase land. Legal entities are prohibited from purchasing agricultural land.
- Regardless of the decision of the referendum, foreign nationals are prohibited from purchasing land in an area of 50 kilometers from the state border of Ukraine.
- Legal entities whose participants are aggressive state citizens, individuals who have been sanctioned, are prohibited from purchasing land, even if a referendum has been held.
- The ban also applies to foreign states or offshore companies or beneficiary-owned companies, which cannot be established.
Legal entities from countries that do not cooperate in the field of combating crime and plunder of income from companies under sanctions will also not be able to purchase Ukrainian agricultural land.
- The tenant has pre-emptive right to purchase. Tenants who work on the land and have the right to use the latter from 2010 onwards can purchase land with installments of up to 10 years at the expense of an authentic monetary value of such plots and without tendering the land.
- Banks can own land within the framework of collection of collateral. Such sites should be removed at auction within 2 years.
- The minimum price criterion is not less than the monetary value. In the first two years until 2030, a ban on the sale of state land will apply.
It is worth noting that the condition of providing assistance from the IMF is to adopt a law on banks and a law on land. Immediately after meeting the IMF’s requirements, Ukraine may receive the first swift installment in the amount of approximately $ 2 billion in two weeks. Without receiving assistance from international partners, the country faces a collapse of the economy and default.
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Recall, on 30 March, Verkhovna Rada adopted in reading a law on the reform of certain banking regulation mechanisms number 2571-D, also known as “anti-Colomian”. The legislation was supported by 267 deputies with the required 226 votes.
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