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Land News from Ukraine


The State Agency of Land Resources made public the draft law “On Farm Land Turnover,” which over three months has been revised at the agency with participation of business representatives.

“The project now should be coordinated by the ministries, in order that in September it was submitted to the parliament,” deputy head of the market management and land assessment department of the State Agency of Land Resources Yuriy Nykytenko explained.

According to him, in the new wording of the document, reduction of possibility of speculative land sale is envisaged. In particular, in the repeated alienation of land plots a differentiated rate of state duty will operate for attestation of the purchase/sale agreement. Over the first year of the land alienation, one has to pay 100% of its normative money value (the average norm is UAH 20,000/ha), from the second to the 10th year, the payment will reduce by 10 percentage points - from 90% to 10% of the norm. An initial attestation of the purchase/sale agreement will not be 1% of the agreement amount, but 1% of the land's appraised value.

The government also decided to protect tenant farmers. In case of termination of the rent agreement, the landlord will not hamper harvesting, and in case damage is inflicted, he/she will compensate for the missed profit fivefold. “Let this norm be, it will not hamper anyone,” Director General of the Industrial Milk Company Alex Lissitsa commented on this provision in this way.

By the way, the norms on revision of rent rates disappeared from the draft law (on raising the minimum rate to 3%) and introduction of a duty for development of the farm land infrastructure at 1% of the land's assessment value. Those provisions will be included into a special draft law.

To remind, the deputies several times blocked consideration and adoption of this draft law. In 2011, the government draft law has been turned down. And the draft law by Hryhoriy Kaletnik was removed from consideration at the stage of the second reading. As a result, the deputies decided at the end of 2012 to prolong a moratorium for the sale of farm lands until 2016.




The Verkhovna Rada of Ukraine has allowed until January 1, 2015 to transfer state and municipal land plots to the ownership or use of individuals and legal entities for urban development needs, as well as change the purpose of land in the absence of a zoning plan or a detailed plan of the territory.


Some 273 MPs voted for amending the final provisions of the law of Ukraine on the regulation of urban planning activities.





Investment attractiveness of the domestic agricultural sector is growing. For example, last year direct foreign investment into agriculture increased by 6.4% compared to 2011. This tendency maintains due to the Government support. It is predicted that Ukrainian farmers can attract 20-30 billion USD of investments during the next 5-10 years. This was announced today by Mykola Prysyazhnyuk, the Minister of Agrarian Policy and Food at a briefing at the meeting of the Government.

"Today, Prime Minister of Ukraine has summed up the results of the business forum "Ukraine and Partners" held last week in Kyiv. I would like to point out the discussion "Investments into agricultural sector of Ukraine" that took place within it. Thus, agriculture panel was marked as one of the most visited events. Over 500 people attended it. These were the delegates of the largest agricultural sector partners of Ukraine, international organizations and major foreign investment companies," said the Minister.

Mykola Prysyazhnyuk has stressed that all participants emphasized the high level of Ukrainian agricultural sector investment attractiveness. According to him, economic indicators also show this. Thus, 2012 direct foreign investments into agriculture increased by 6.4% compared to 2011. Besides, the Minister has said that last year it was used 16 billion UAH of capital investment that is 11% more against 2011.

"This positive trend is observed due to the measures taken by the Government. Thus, it provides measures to ensure clear, transparent and predictable conditions for the agricultural business. Therefore, foreign investors are more interested in our agriculture. The specialists predict that the Ukrainian agro-industrial companies may attract 20-30 billion USD during the next 5-10 years," Mykola Prysyazhnyuk said.


Ministry of Agrarian Policy and Food of Ukraine

Ukraine is implementing Economic Development Program for 2013-2014. Within this document, it is planned to attract investments into agricultural engineering. Currently, five investment projects are working out. They will be implement under the state guarantee of about 700 million UAH. This was announced today by Mykola Prysyazhnyuk, the Minister of Agrarian Policy and Food at a briefing at the meeting of the Government.

"The government is actively implementing the Economic Development Program for the next two years. The agricultural unit is one of the leading branches in it. Within it, we plan to attract investment into the domestic agricultural machinery development. Currently, we are working out five investment projects. Their funding will be carried out under the state guarantees on the amount of about 700 million UAH," Mykola Prysyazhnyuk said. According to the Minister, within these investment projects it will be started the production of combine harvesters at «Kherson machine-building plant» in cooperation with CLAAS, as well as at «Paton Welding Plant» together with New Holland. «Ukravtozapchast" will produce modern powerful tractors with Italian company Landini. Besides, wide-seeder and tillage equipment will be produced at JSC «Red Star».

"According to our calculations, these investment projects will increase import substitution of agricultural machinery up to 40%," said Mykola Prysyazhnyuk.


Ministry of Agrarian Policy and Food of Ukraine

This year the cost of sold Ukrainian non-agricultural land of the state and communal property was 27.3 million UAH. In general, it was sold 174 non-agricultural land plots of the total area of 71.52 hectares. This is reported by the State Land Recourses Agency of Ukraine.

Thus, during four months of 2013 there were land sales in different regions of Ukraine. It was sold 9 land plots of the state and communal property with the total area of 1.53 hectares, 12 lease rights to the land area of 28.46 hectares, 5 superficies rights to an area of 0.02 hectares and 1 right on perpetual lease to an area of 27.36 hectares. Thus, individuals and legal entities acquired nine land plots and 18 rights on land disposal.

The budgets of different levels will have more than 930 thousand UAH of the revenue due to the land alienation and rights to it. In general, the State and local budgets in Ukraine in 2013 received 102.7 million UAH, including the state budget - 6.8 million from the sale of non-agricultural land.


Ministry of Agrarian Policy and Food of Ukraine

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