On 20 December 2011 the Ukrainian Parliament has adopted the Law “On introducing changes into the Section 10 of the Transitional Clauses of the Land Code of Ukraine with respect to the restriction on alienation and change of designation of agricultural lands” (the “Law”).
The Law provides for the extension until 1 January 2013 of the previously established moratorium on disposal of agricultural land.
In particular, until 1 January 2013 the Law prohibits to:
- contribute the right to a land share (payi) into the charter capital of business entities;
- sale and purchase of state (municipal) owned agricultural lands except for the withdrawal (redemption) of such lands for public needs;
- sale and purchase or transfer otherwise (except for inheritance, swap and withdrawal (redemption), as well as change of the designation purpose, of privately owned land, if it falls within any of the following three categories: land for commercial agricultural production; land allocated in-kind (on-site) to the owners of land shares (payi) for individual farming activity; and land shares (payi).
The disposal of the above lands shall be possible in case the law of Ukraine on land market comes into effect, but not earlier than 1 January 2013.
The Law shall be signed by the President yet. Thus, it will come into effect upon such signature and on the day following its official publication.
In case the Law comes into force the circulation of agricultural lands in Ukraine shall be limited for one more year.
