On 31 March 2020, the Ukrainian Parliament voted for the Draft Law "On Amendments to Certain Laws of Ukraine on Transactions with Agricultural Land" No. 552-IX* (the "Law"). The Law lifts the ban (so called “moratorium”) on transactions with agricultural land that has been in place since 2001, while introducing a number of restrictions applicable to the launch of the new land market.
Current situation with agricultural land market
The current ban covers:
(i) Sale and purchase of state- and municipally-owned agricultural land, except where such land is seized (acquired) in the public interest;
(ii) A number of transactions involving privately-owned (a) agricultural land designated for commercial farming; (b) agricultural land allocated in kind to the owners of land shares (pai) for individual farming; (c) non-allotted land shares (pai) as follows:
Position after the expected entry into force of the new Law
(i) With effect from 1 July 2021:
(ii) With effect from 1 January 2024:
(iii) The matter of foreigners’ ownership to agricultural land will be addressed through a referendum (which date and other details are not yet known);
(iv) Sale of state- and municipally-owned agricultural land remains banned;
(v) Sale price of agricultural land will be subject to state regulation until 1 January 2030 (sale price cannot be lower than estimated normative monetary value);
(vi) Preemptive rights to purchase agricultural land will become transferrable;
(vii) Below listed entities and individuals will not be entitled to acquire any agricultural land:
A) Legal entities:
- state- and municipally-owned land plots;
- land plots allocated in kind to the owners of land shares (pai);
- land plots within a 50-km area from the state border of Ukraine (except for the state sea border of Ukraine);
B) Individuals or legal entities which are subject to special, restrictive economic and other measures (sanctions), prohibiting them from entering into any transactions to acquire ownership of land plots, including their related parties.
C) Persons that belong or belonged to terrorist groups.
(viii) Notaries will have to check compliance with the restrictions on acquisition of agricultural land while certifying the respective agreements (subject to procedures and technicalities that are yet to be developed).
(ix) Buyers will be required to confirm sources of their funds used for acquisition of agricultural land.
In addition, two related draft laws — Nos. 2194 and 2195** — are being prepared for their second reading. If enacted, they will significantly influence the further reform of the land market.
*The Law is available in Ukrainian at:
** The draft laws are available in Ukrainian at: