29
Fri, Mar
48 New Articles

The Verkhovna Rada of Ukraine Adopted the Bill on the Privatization of Lands Owned by the State Bodies at the First Reading

The Verkhovna Rada of Ukraine Adopted the Bill on the Privatization of Lands Owned by the State Bodies at the First Reading

Ukraine
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

On 13 July 2020, the Verkhovna Rada of Ukraine adopted at the first reading the bill of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Concerning Ensuring the Right of Employees of the State Agricultural Enterprises, Institutions and Organizations to Receive a Land Plot (Share)”.

In view of promoters of the bill, the provisions of the Land Code of Ukraine that regulate the privatization of lands of the state or communal agricultural enterprises are do not determine the proper procedure for privatization and entail a great number of contradictory situations. For instance, the legislation does not still provide specific cases when such a privatization may be carried out and does not determine what area of the agriculture land may be privatized, and what area shall remain in the state or communal ownership.

In view of this, the bill provides the following peculiarities:

  • only lands of state agricultural enterprises, institutions and organisations shall be subject to the privatization;
  • the privatization of lands of state agricultural enterprise shall be allowed in such cases: і)in the course of privatization of the enterprise itself; іі) without any resolutions on the enterprise privatization, based on the resolution of the body governing the affairs of the enterprise; ііі) in the course of winding up the enterprise;
  • the Law determines the procedure for allocation of agricultural lands in course of the privatization of lands of the state agricultural enterprises, in particular: і) up to 40% of lands shall be allocated between employees of the enterprise and retirees among them, employees of state and communal social protection institutions; іі) up to 20% of lands shall be transferred into the ownership of the war veterans for individual farm household; ііі) no less than 40% shall be granted for the lease at land auctions (except for the cases of the privatization of the enterprise lands in connection with the privatization of the enterprise itself).

In case of the privatization of the enterprise itself, the lands remaining after the allocation between employees of the enterprise, employees of state and communal social protection institutions and war veterans, shall be granted for 50 years for lease to the business entity into which the enterprise is transformed.

By Taras Lytovchenko, Counsel, and Andriy Oliinyk, Junior Associate, GOLAW

Ukraine Knowledge Partner

AVELLUM is a leading Ukrainian full service law firm with a key focus on Finance, Corporate, Dispute Resolution, Tax, and Antitrust.

Our aim is to be the firm of choice for large businesses and financial institutions in respect of their most important and challenging transactions.

We build lasting relationships with our clients and make them feel secure in new uncertain economic and legal realities.

We incorporate the most advanced Western legal techniques and practices into our work. By adding our first-hand knowledge, broad industry experience, and unparalleled level of service we deliver the best results to our clients in their business endeavours. Our partners are taking an active role in every transaction and ensure smooth teamwork.

AVELLUM is recognised as one of the leading law firms in Ukraine by various international and Ukrainian legal editions (Chambers, The Legal500, IFLR1000, The Ukrainian Law Firms, and others).

Firm's website: www.avellum.com

 

Our Latest Issue