The Public Union "Ukrainian Agri Council" supports the draft Law "On Amendments to Certain Legislative Acts of Ukraine on Improving the Efficiency of Land Used by Individuals and Entities of the Public Sector of the Economy" (Reg. No. 7588 as of July 25, 2022).

This draft law is extremely important for the agricultural sector and is aimed at improving the efficiency of agricultural land used by public sector entities.

It provides for the abolition of the right of permanent use of agricultural land for state-owned enterprises. Instead, such enterprises should be transformed into joint stock companies and limited liability companies with 100 percent of the shares in the authorized capital owned by the state. After such a transformation, these enterprises will receive the relevant state agricultural land for lease for up to 50 years at the rate of 12% of nominative monetary valuation.

These newly created state joint-stock companies and limited liability companies will be entitled to further sublease such agricultural land to agricultural producers through land auctions for a period not exceeding 14 years, and the area of one lot should not exceed 250 hectares.

The UAC also welcomes the consideration by the Verkhovna Rada Agricultural Committee of the proposals supported by the UAC, Oleh Tarasov and other people’s deputies to establish a fuse for illegal alienation of state agricultural land through privatization of relevant companies.

Members of the Agrarian Committee supported the provision prohibiting the privatization of shares in joint stock companies and limited liability companies that were formed through the transformation of state-owned enterprises and to which state-owned agricultural land plots were leased.

We hope that the draft law will be adopted by the Verkhovna Rada of Ukraine in the second reading and in general as soon as possible.