Roman Drozhanskyi: “Legal entities risk to lose title of inheritance for farmlands”

INTERFAX-UKRAINE
Kyiv. September 18, 2012

“Legal entities, both Ukrainian and foreign, may be deprived of the right to inherit agricultural lands,” a partner of Volkov and Partners Law Firm Roman Drozhanskyi informed “Interfax-Ukraine” agency.
According to him, a draft law No. 11128 “On amendments to the Land Code of Ukraine concerning the purchase of title to agricultural lands” adopted in the first reading on Tuesday, contains a significant drawback. In particular, it suggests amending Article 82 of the Land Code with the provision depriving legal entities of the right to inherit agricultural land plots.
“This right will be abolished not only for foreign legal entities (as provided for in current wording of the Land Code), but also for agricultural enterprises, scientific and research institutes, educational establishments, which have an ownership title for farmlands under the Laws of Ukraine,” Roman Drozhanskyi emphasized.
However, he noted that the key innovation under the draft law is that the title to acquire non-agricultural lands will be gained by those Ukrainian legal entities, which shareholders (members) are foreign individuals and legal entities.
The Lawyer believes this innovation will enable to increase a number of prospective investors for agriculture in Ukraine.
Reportedly, on Tuesday 233 people’s deputies voted “for” to adopt the draft law “On amendments to the Land Code of Ukraine concerning the purchase of title to farmlands” in the first reading registered with parliament on August 31, 2012.
The draft law is purposed to provide legal entities established under the laws of Ukraine and foreign countries with the possibility to purchase land plots from the state and public ownership.