Ukraine makes headway with land reform

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The long-awaited Law of Ukraine “On amendments to the Land Code of Ukraine and other legislative acts to improve the governance of land relations and their deregulation” No. 1423-IX (“Law”) entered into force (save for certain provisions).

The Law aims to boost the capabilities of local authorities (“Municipalities”) by granting them ownership rights to the state-owned lands located outside the villages and towns (“Outside Lands”). As a result, the Municipalities will manage the Outside Lands instead of the State Service of Ukraine for Geodesy, Cartography and Cadastre and other state authorities.

According to the Law, the Municipalities will become owners of the Outside Lands either:

  • by registering their ownership rights with the State Register of Proprietary Rights to Immovable Property (“Real Estate Register”) if it already contains information on the Outside Lands; or
  • automatically if the Real Estate Register does not contain information on the Outside Lands.

There will be no need for the Outside Lands’ users to amend their agreements due to the change of the landlord.

Additionally, the Law:

  • allows emphyteuta (a user under emphyteusis agreement) to lease out the land plot without the landlord’s permission
  • allows tenants of privately owned agricultural land plots to sell their lease rights without the landlord’s permission
  • allows users of privately owned agricultural lands plots to pledge their land use rights to any third parties
  • sets the detailed foreclosure procedure on the pledged land use rights
  • allows owners of the buildings located within the coastal protection zones to reconstruct them
  • introduces the rankings of pre-emptive right to purchase agricultural land plots

We believe that the Law will boost the Municipalities and enable agricultural land users to raise additional funding for their business. AVELLUM is ready to guide the clients through the novelties of the Law in order for them to make the most of the new opportunities. For further information on the topic please contact Maksym Maksymenko, Partner, or call at +380 44 591-3355.

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