On 13 November in the Parliament considered in the first reading the draft law about the landon 11 November, the Verkhovna Rada considered the draft laws on selling agricultural land, including to foreigners. In the agenda introduced 11 bills (1 presidential primary and 10 deputies from different factions and groups).
After several hours of discussion in the first reading adopted the draft law No. 2178-10. Voted for by 240 deputies. 227 votes gave “public Servant” and 13 “for” given by independent MPs.
“Country” has detailed analizirovali this document.
Recall its main provisions – particularly those relating to access to the land market to foreigners and foreign companies.
Can foreigners buy
The land market is launched October 1, 2020.
In the new version of the bill says that buying the earth citizens of Ukraine, territorial communities, the state, legal entities established under Ukrainian legislation.
Thus, in contrast to the original version from the Ministry of economy, adopted in the first reading the draft law, foreigners are not allowed to buy land (even through ownership of companies) until January 1, 2024.
However, the law left many loopholes.
So, foreigners and persons without citizenship can acquire the right of ownership to land, if you received it by inheritance thanks to a will attorney. However, they are required to enter into this inheritance during the year.
Also, the aliens will allow the priority to buy back the land which their company at the moment already rented. Such land – about three million hectares out of 42. in this case the bill is ambiguous – whether their land they can buy, or any other, even that which is not rented.
But the main loophole for foreigners is the opportunity to buy land through a Ukrainian company that created “pounds”-the Ukrainian citizens, who then, after January 1, 2024, rewrite them on foreigners.
However, Zelensky promises for the second reading of the law to make a reservation on the prohibition of foreigners to buy land before the referendum, which would put an end to this issue. However, it is unknown whether this ban is to touch the above terms and loopholes.
Sale in one hand
The bill provides standards for the sale of land: not more than 15% of the land in one area and 0.5% of Ukrainian land Bank. That is, in fact, specific farm may receive more than 200 thousand hectares in one hand.
Opponents of land reform saying that this is a very big plot, and it opens the way for the landowners to buy the land. This means that 200 people can control all the land in Ukraine.
There are no restrictions on buying companies with a defined land banks. That is, at desire it is possible to buy and half of Ukraine: Sabanci large agricultural holdings in Ukraine there are at 300-500 thousand hectares.
In the neighboring European countries allow producine more than 5-10 thousand hectares.
The price of land
The minimum price for the land proposed to be set at the level of normative monetary evaluation. The Ukrainian average is 28-30 thousand hryvnia per hectare, that is, the order of thousands of euros.
At this price deferred for five years the earth will be allowed to buy the villagers, who in his time designed the land for permanent use under the HOMESTEAD or farm (before the adoption of the new Land code in 2002).
Calculations show that farmers will have to annually pay about 200 dollars per hectare. The earnings of grain per hectare is $ 300. That is, after the law came into force the villagers will have to pay most of the income to the state.
While there are no mechanisms for lending to farmers medium-scale, so they can buy the land and create a rural middle class of owners.
Farmers put initially in a non-competitive position in comparison with large Ukrainian agricultural holdings (not to mention foreigners) who have much more money to purchase land.