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Rules for lease of the land plots with bodies of water located on them are clarified in Ukraine

On November 4, 2020, the Verkhovna Rada of Ukraine adopted a draft law No. 0853 "On Amendments to Certain Legislative Acts of Ukraine Concerning Clarification of the Procedure for Lease of the Bodies of Water Together with Land Plots" ("Draft Law").

The Draft Law provides for several amendments to the Law of Ukraine dated October 6, 1998, No. 161-XIV "On Land Lease", namely:

  • It is possible to lease a land plot together with a body of water located on it;
  • It is determined that for the transfer of land plots with bodies of water located on them, a template of a lease agreement that must be approved by the Cabinet of Ministers of Ukraine will be used;
  • A list of the following essential terms is established for lease agreements for land plots transferred into the lease with bodies of water located on them:

-        Amount of lease payment for the body of water;

-        Volume and area of the body of water (water space), including fishery technological reservoirs;

-        The list of infrastructure and facilities located on the land plot (if any), their characteristics and condition;

-        Obligations of the tenant to implement measures for the protection and improvement of the ecological state of the body of water, operation of reservoirs and ponds, as well as the need to formalize the right to use hydrotechnical structures and the right to special water use;

-        Adding a passport of the body of water as an integral part of the lease agreement.

  • A payment for the body of water is established – a separate fee, levied under a lease agreement for land plots with bodies of water located on them;
  • It is envisaged that lease agreements for land plots with bodies of water located on them will need to be submitted both to the tax authorities and to the State Agency for Water Resources of Ukraine.
  • Among the new obligations of the land tenant, the following obligations for the use of bodies of water are also established (if the relevant site is leased):

-        Timely payment of the rent for the body of water;

-        The use of the body of water in accordance with the requirements of the water legislation of Ukraine;

-        Non-creation of obstacles in the exercise of the right to general water use and in the exercise of special water use in accordance with the issued permits 

The adoption of the Draft Law is associated with a long-term collision between the Land and Water Code, which led to a different practice of acquiring the right to lease a land plot of the water fund and water surface.

At the same time, the provision on the need to issue a passport for the body of water remains quite controversial.

For more information, please contact Asters Counsel Anzhelika Livitska and Senior Associate Bohdan Shmorhun.

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