The government has told about main principles of the functioning of the land market in Ukraine

Deputy Minister of economic development and trade Taras Vysotsky, who in the government is engaged in agricultural sector, told about the main principles of the land market that will work in Ukraine from 2020.

the President. Zelensky instructed the government until October 1 to submit to Parliament bill on the land market, and in December the Parliament should cancel the moratorium on sale of arable land.

agricultural Land will be able to buy citizens of Ukraine, territorial communities, public enterprises and legal entities registered in Ukraine and pay taxes here. The citizens of Russia, operating in Ukraine or are owners of companies registered in Ukraine to buy farmland will be prohibited. Initial inspection will be conducted at the stage of registration of property rights to land. The secondary will hold special services, and in the case of a land acquisition company with Russian owners, the state will be able expropriate cultivation. A permit for the acquisition of land by foreign citizens and companies will increase competition in the market and will allow to increase investment and economic growth.

Will be checked the legal origin of the funds for which will buy the land.

will Sell just the areas included in Derzeitiger.

Citizens or legal persons may acquire not more than 15% of agricultural land within the same region and less than 1% of agricultural land in the country. Agricultural holdings will not be able to buy land on affiliates, because when registration of land ownership will be carried out the corresponding inspection. In further developed software that will analyze the amounts of acquired land and report to the Registrar. This restriction would not apply to land lease.

the Government will allocate UAH 4.4 billion for compensation of interest rates on loans for the purchase of land to companies that will have the status of agricultural producers (which cannot be natural persons). Only be compensated the equivalent rate set by the NBU, which is now 16.5%. This would equalize the ability of domestic farmers and foreigners with access to cheap capital. The allowance for the year 2020 was determined based on the average price of 40 thousand UAH/ha, the NBU discount rate, the number of people willing to sell land within the 5-7% range and the launch conditions of the market in the second half.

Preemptive right to purchase the land is the tenant who will process it.

the Fund Will partial guarantee is subordinated to the Ministry of Finance, which will simplify the processing of loans for the purchase of land and will offset the interest within the NBU discount rate.

the National Academy of agrarian Sciences of Ukraine, land which is used ineffectively or illegally leased, the amount of land will be reduced to 10 thousand hectares in the country, which is enough for scientific research. Other sites will give the status of state or municipal land, after which a decision will be made regarding their fate.