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In the first two years after the launch of land reform, land purchases shall be limited to 100 ha per buyer.
The Verkhovna Rada, Ukraine's parliament, at an extraordinary meeting overnight Tuesday, March 31, passed a bill launching the farmland market in the country. UNIAN figured out what the adoption of land reform means and what are the main provisions of the bill.
Rada passed a bill on the launch of farmland market from July 2021
Bill No. 2178-10 "On amending certain legislative acts of Ukraine on the turnover of agricultural land" during an extraordinary meeting of the Verkhovna Rada on March 30 was backed by the majority of lawmakers.
As many as 259 MPs voted for it, with the required minimum of 226 votes.
What land reform implies
Farmland market in Ukraine will be launched on July 1, 2021 (the previous draft set the date for October 1, 2020).
The main provisions of Bill No. 2178-10 are the following:
· Only individuals who are citizens of Ukraine shall be able to buy land until January 1, 2024;
· Admission of foreigners to the purchase of land in Ukraine shall be possible only after the relevant decision is adopted at a national referendum;
· Agricultural lands of state and communal ownership shall not be sold;
· In the first two years after the launch of land reform, land purchases shall be limited to 100 ha per buyer;
· From January 1, 2024, Ukrainian legal entities shall be allowed to buy land, but no more than 10,000 ha;
· Only non-cash payments shall be allowed;
· Banks may be owners of land within the framework of collateral recovery. Such plots must be alienated at auction within two years.
· Legal entities whose owners are citizens of the aggressor state [Russia] and/or sanctioned individuals shall be banned from acquiring land even following a referendum;
· Foreign citizens shall be barred from buying land within 50 km from the state border;
· The selling price of farmland plots shall not be lower than their normative monetary value. This norm will be valid until January 1, 2030.
Open land market is a condition for increasing the IMF program
On March 27, during a meeting of the Servant of the People parliamentary faction, Ukrainian President Volodymyr Zelensky said Ukraine had agreed with the IMF to increase the program to US$10 billion. The president stressed the country would face economic collapse and default without receiving assistance from international partners.
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The adoption of laws on banking regulation and land reform was the remaining condition for the IMF to provide assistance. Within two weeks after fulfilling the IMF requirements, Ukraine could receive the first fast tranche worth about US$2 billion.
It is worth noting the parliament has been considering amendments to the law "On land turnover" since early February 2020. In total, 4,018 amendments were made to the document.