Secret land privatisation in Ukraine. Commentary The SCS is in charge of land registration including agricultural land and until recently was known as one of the most corrupt institutions in Ukraine.
Leshchenko, who became the head of this institution in June this year, launched an audit of the registration system and an agricultural land inventory control. A number of gross violations have been revealed during the inspection. For example, it turned out that uncontrolled access to the register was granted to third parties who could make any modifications to it, e.
Currently, full control over the register has been restored, and work on the preparation of an aerial map of the entire country has been announced. This will facilitate the monitoring of land use as intended.
Ukrainian law also requires the permission of the guardianship authorities for the sale of real estate owned by someone under the age of Real estate sale and purchase agreements must be made in writing and notarized in accordance with the applicable legislation. Ukrainian law stipulates that agreements must contain certain essential provisions, including details of the parties, the specific details of the property and the purchase price.
The parties to the agreement also generally execute an instrument of transfer and acceptance in relation to the real estate. Sale and purchase contracts for real estate other than land usually include the following:. Sale and purchase contracts involving plots of land should include the mandatory conditions necessary for the effective fulfilment of the agreement location and size of the plot of land, its cadastral number, purchase price, encumbrances, terms of transfer, timing of the transfer, etc.
Under the Ukrainian Civil Code, the seller is obliged to warn the buyer about any rights of third parties affecting the property eg rights of tenants, security interests, rights of lifelong use etc. In the event that a third party brings a claim against the buyer, concerning matters which arose before the sale, the seller must participate in the court hearings on the side of the buyer.
The seller is obliged to transfer the property and to deliver all the related documents eg the 'technical passport' —- the set of documents containing all the technical information about the premises to the buyer in accordance with the sale and purchase contract and relevant legislation.
The property that the seller transfers to the buyer must comply with quality requirements. The warranty period in which a claim can be brought is three years unless the contract provides for a longer period. Generally statutory warranties can be limited by agreement of the parties, although some statutory warranties cannot be changed.
The range of remedies depends on the kind of misrepresentation made. For instance the seller is obliged to warn the buyer about the rights of third parties otherwise the buyer is entitled to demand a reduction in the price or the termination of the sale and purchase agreement. In addition, the buyer can terminate the sale and purchase agreement if the seller refuses to transfer the property. Acquisition of real estate forming a single integral property complex may require anti-monopoly clearance in a form of consent of the Anti-Monopoly Committee of Ukraine.
The Ukrainian Land Code provides for liability in the case of individuals and companies doing anything that contaminates the land with chemical or radioactive agents, or sewage, or pollution by industrial, everyday and other waste.
Moreover, the law dealing with the preservation of the natural environment stipulates that companies whose activities have a harmful effect on the environment must equip themselves with any installations and facilities necessary for purifying or sterilising emissions, as well as minimising the effect of harmful agents.
Those causing environmental damage are also obliged to provide compensation to those affected if they cannot prove that a natural disaster caused the damage, or that it was caused by intentional activity by the victims. Although formally the liability should be imposed on the person who caused the environmental damage, in practice the controlling authorities tend to go against the current owner of the real estate, not tracing the history of the ownership of the real estate.
Thereafter the buyer of the real estate may file a restitution claim against the person who caused the environmental damage. Planning documentation kept by local authorities, as well as documentation pertaining to each particular property, should be verified. These include, in particular, the master plan, the detailed plan of the locality, zoning plan, title documents etc.
The zoning of land can be checked in the State Land Cadastre and title documents. Generally, the use of land can be changed, but there are some categories of land where a change of use is not permitted or where this involves a complex procedure, requiring approval from the Cabinet of Ministers of Ukraine or the Parliament of Ukraine.
From 1 January with amendments of 1 March , the following restrictions apply in relation to zoning issues:. A PPP is usually involved in the construction of highways, roads, railways, runways, bridges, tunnels, metros, river — and sea-ports and associated infrastructure. PPP projects became more popular in the course of the preparations for the Euro football championship. The aforesaid law broadened the list of privileges and guarantees for private partners eg now the private partners can acquire into their ownership the objects created by them in course of PPP; the objects of PPP can also be in joint ownership of the public and private partners; disputes arising out of agreements on PPP concluded with participation of non-residents can be resolved by an international arbitral tribunal; in case of early termination of an agreement on PPP through fault of the public partner, he is obliged to compensate the private partner investments non-reimbursed within the term of such agreement and damages occurred due to early termination of the agreement on PPP.
However, foreign ownership will not be considered earlier than , and only if Ukrainians agree to this during a referendum on the issue.
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This will increase the productivity of the Ukrainian agricultural sector and revive the Ukrainian countryside. Ukraine will strengthen its position as a major contributor to world food security. To achieve this, we are developing a monitoring system. This will make it possible to analyze data and identify trends at the local, regional, and national levels. We have launched an open data portal that will allow anyone to view detailed information about the ownership and usage of Ukrainian farmland.
Steps are currently underway to eliminate obsolete auctions that demand physical presence and are often subject to questionable outcomes. We aim to provide land market participants with the financial instruments to make the most of the new reforms.
This includes creating a partial loan guarantee fund for small farmers offering financing on simplified terms. The government will also temporarily expand an existing loan program for farmers looking to buy land. Within those 2 years, such land should be alienated at auction.
After January 1, , Ukrainian capital companies will be allowed to purchase any type of agricultural land. Ukrainian capital companies are allowed to own land within the limits that can be owned by their shareholders as specified above , but not more than 10, hectares. However, this limit does not apply to banks. State and Municipal Land. The ban on sale of state and municipal agricultural land remains in force. Purchase of shares in Ukrainian Companies.
Foreigners and any legal entities including Ukrainian capital companies are not allowed to purchase shares of companies that own agricultural land. The law states that foreigners and legal entities may be allowed to purchase such shares only if this is approved by a national referendum.
Foreign citizens. Foreigners are not allowed to purchase agricultural land. The ban remains in force. The law states that foreigners may be allowed to purchase agricultural land only if it is approved by a national referendum.
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