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In Ukraine extended the moratorium on land sales

The prohibition to buy and sell agricultural land was introduced in 2002

Author photo: Gregory Szalai, “Today”

The Verkhovna Rada of Ukraine for the ninth time to extend the moratorium on sale of agricultural land (agricultural) designation. The corresponding bill No. 7350 a basis and in General was supported by 236 deputies at the minimum required 226 votes. Previously it was assumed that the moratorium will last until 2018. Now the moratorium has been extended for at least another year – until January 1, 2019.

According to the current edition of the Land code, the purchase and sale of agricultural land in Ukraine is not allowed until the entry into force of the law on turnover of land with/x destination. The prohibition to buy and sell land was introduced back in 2002, “the transition period”.

The authors of alternative documents proposed to extend the moratorium to other periods, such as five or eight years – until 2023 or 2026. The MPs also urged not to extend the moratorium at all or extend it only for a week.

However, the relevant Committee on agrarian policy rejected such proposals and approved it, the bill No. 7350.

“The Committee decided to recommend No. 7350 taken for a basis and in entirety as a law. All alternative bills reject”, – announced the decision of the Committee, its head Oleksandr Bakumenko (PPB).

The bill was presented by MP Sergei Labatut (the will of the people). According to him, the opening of the land market is necessary, however, that Ukraine such a step is not ready.

“People are not ready to opening of the market. They have invested years into the heads of horror. Obviously, the land should be let in free swimming, but we all know that while domestic farmers, though small, though large, actually buy the land can not, we have no moral right to let the market today. Therefore, full market opening should be postponed for a certain period of time… we propose to continue the moratorium for another year until 1 January 2019,” he said Labatut.

Earlier, the Ministry of agrarian policy called the probable cost per hectare after the lifting of the moratorium. So, the price per hectare of agricultural land in Ukraine in case of cancellation of the moratorium on its sale may amount to 50-60 thousand. The Ministry recalled that the moratorium on sale of agricultural land will operate as long as will not be voted on the law on circulation of agricultural land.

However, as repeatedly reported by the experts, Ukrainians have learned to circumvent the law and sell the land. One way is when the farmer gives the land under the contract of emphyteusis 100-200 years. The agreement attached to the will and power of attorney to manage the unit. The prices for such land are underestimated, and taxes on sales are not paid.

In addition, the lifting of the moratorium on sale of agricultural lands is one of the structural beacons of the International monetary Fund, which stresses the great importance of an open land market to enhance the Ukrainian economy.

The survey

the law, the land, the Verkhovna Rada, the ban, the moratorium, the sale of land

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Authors:

Ksenia Kapustinskaya , Ekaterina Tyurina

Source:

“Today”

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