Land sale moratorium extended in Ukraine

Ernst & Young, Kyiv, Ukraine

22 February 2010

KYIV - Tax and Legal Newsletter

The land sale moratorium has been extended until 1 January 2012

On 2 February 2010, Law No.1783-VI of 19 January 2010 took effect. It states that until at least 1 January 2012 a moratorium on the following will be in force:

?) purchase and sale of agricultural land plots in state and community ownership, except for their seizure (buyout) for public use;

b) purchase and sale or other disposal of land plots and change of designated purpose (usage) of: land plots owned by individuals or legal entities for agricultural commodity production; land plots allotted in kind (afield) to the owners of land plots (shares) for individual husbandry;

c) land plots (shares).

This rule does not apply to their bequeathal, to the cases when one land plot is exchanged for another in line with the Law or to seizure (buyout) of land plots for public use. Please recall that under paragraph 15 Section X of the “Transition Provisions” of the Land Code of Ukraine, the following parts of agreements (including powers of attorney) signed during the moratorium will be deemed invalid as of their signing (authorization): the parts concerning purchase and sale or disposal in any other way and the parts concerning the transfer of rights to disposal for these land plots and any land plots (shares) in the future.
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