Ukraine's parliament passes law on land market
Land Union of Ukraine | 20 July 2011
In July, 19 in Verkhovna Rada of Ukraine was registered the project of Law “On Land Market”. It was brought in by Nikolay Azarov, the head of the Cabinet of Ministers of Ukraine.
The aim of this bill is a legal settlement of the questions related to organization and functioning of land market in Ukraine. This law will determine the legal and economic principles of land market, establish the order of sale of lot lands and rights on lease, establish legal limitations in relation to the agricultural lands, setting the purpose to prevent speculative operations and monopolization of land market.
According to the draft law, only citizens of Ukraine, farms, and the state have the right to buy the agriculture lands. Foreigners do not have the right for the agriculture lands.
Nevertheless there is the procedure of lease in Ukraine. And as well as before foreigners can lease the agricultural land that does not need money to buy land lots. On such terms more than hundred foreign enterprises work in Ukraine.
The draft law also provides that the agreement for lending a land can be up to 50 years.
For information: The average cost of lease is around 36 dollars per 1 hectare per year. More than 70% of rent is paid in a natural form.
Passing the Law “On Land Market” and the Law On State Land Cadastre will simplify the procedure of lease and will strengthen the guarantee of ownership rights on land lots in Ukraine.
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