On 2 November 2016 the Law of Ukraine No. 1669-VIII "On Introducing Amendments to Chapter X “Transitional Provisions” of the Land Code of Ukraine regarding Extension of Prohibition on the Alienation of Agricultural Land" (the Law) became effective. The Law extends the moratorium on alienation of agricultural land until 1 January 2018.

Main Developments

The Law extends the moratorium on the following actions for yet another year:

(1)    the sale of state-owned and municipal land plots designated for agricultural use, except for the withdrawal (buy-out) of such land plots for public needs;

(2)    the sale and purchase or other alienation (except for certain cases, including  exchanging of a land plot, withdrawal (buy-out) for public needs, etc.) and change of designated use of:

(i)     land plots owned by individuals and legal entities which are designated for agricultural commodity production,

(ii)    land plots allocated afield to an owner of a land share (“pai”) and designated for individual agricultural household,

(iii)   land shares (“pai”); and

(3)    contribution of a land share (“pai”) to the charter capital of a commercial company.

Any deeds executed in respect of sale or other alienation of abovementioned land plots and land shares (“pai”) at the time when moratorium is effective, are deemed invalid as of the moment of their execution (notarization).

The Law also requires that the Cabinet of Ministers of Ukraine develops and introduces for consideration by the Parliament of Ukraine the draft law on agricultural land turnover by 1 July 2017.
Additional notes


This LEGAL ALERT is issued to inform Baker & McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases.