New Year – new opportunities. Legislative changes regarding the management of agricultural land

The question of the circulation and using of agricultural land has long been debatable not only among lawyers and people’s deputies, but also among ordinary citizens, since many of them are the owners of such land plots. Also, this topic is rather sensitive to agrarian companies, which rent a lot of sites, including units for the implementation of activities.
Taking into account these factors, as well as numerous cases of non-using of agricultural land and deterioration of their qualities, the parliament has taken a step that can partially solve the problem. On January 1, 2019, the Law Act No. 2498-VIII entered into force, which amends the issues of using and disposal of land plots. In this article we will understand what new legislators have prepared for us
New concepts and new opportunities
First of all, it should be noted that this is the notion of an array of lands. In accordance with the law, an array is an aggregate of agricultural land and land that is required for their maintenance.
The separate article has appeared in the Land Code, which regulates the distribution of agricultural land set in arrays of land.
Commodity production on the lands of a private peasant and farm, located within the array, can be carried out without changing the purpose.
We can exchange not only among themselves but also with the state or the city
Next – more interesting. Land in state and communal ownership can be exchanged to land plots of private property within the limits of an array. The necessary condition for such an exchange is the same value of such sites in accordance with the normative-monetary valuation, and the maximum permissible difference – 10%.
Another positive change is the consolidation of the possibility for owners and users of land plots to exchange between each other within the lease term. Such an exchange is carried out on the basis of the lease (sublease) agreement of the land plot.
“Control pack”
The new law act also guides the concept of the user to a substantial share and protects his rights. An essential part is considered to be 75% of the land array. Owners or users of substantial shares have the right to lease another part of the land of an array if their non-use creates an obstacle to the rational use of a substantial share.
About the owners and users of sites that are forcibly transferred to the lease, the legislator also thought. They have the right to indemnify property damage in full.
Not bypassed both the field roads and forest protection strips. They will be transferred to the tenants or owners of land plots in an array without conducting land trades. In addition, field roads can be used not only for walkway or passage, but also directly for the cultivation of products. As for rainbow forest strips, they can be leased to specialized enterprises, as well as individuals or legal entities. However, in the event of a transfer to the latter, the contract must contain provisions regarding the conditions for the preservation of such bands.
Undivided and undemanded items and their use
Undivided is the one that corresponds to the land management project subject to dividing, but not allocated to the owner. Undemanded share, for which there is no legal document, or which is not allocated in kind. Such land loats can be transferred to the lease of local councils until the day when the right to the site is registered. This condition is indicated in the contract. The owner of such land loats and their heirs gives time for the registration of loats by 2025. If the registration of the rights does not occur, the owner is considered to be refused.
Inventory of arrays
The law act provides an opportunity to conduct inventory of the entire array by initiatives of state authorities or local self-government. During the inventory, unknown areas, areas under rainbow forest strips are also formed, as well as the introduction of information about such areas to the state cadastre.
Will changes affect the land market?
So, the beginning of the year brought positive changes in the agrarian sector. In essence, the innovation of the law – is an adjustment of the legal framework for existing relations. Indeed, in agrobusiness there are cases when several agro companies actually lease an array and divide it among themselves verbally.
In addition, the problem of nonusing a significant portion of shares in the so-called collective ownership may also be partially resolved, despite the continuation of the moratorium. The permission to exchange areas within the array, as well as the exchange of private property on the one hand, and the state or communal on the other, is definitely a positive dynamic, since not one person faced the problem of registration of rights to a land plot and with numerous bureaucratic obstacles. It seems that new norms can be an impetus for the revitalization of land business. Probably, we will be able to improve the situation with the information of the land cadastre, reduce the number of errors and improve the quality of this information.
Taras Yatsyshchuk
junior associate of
corporate law and compliance practice
ALBachynsky and partners]]>

Author
You may like
A new law on virtual assets: the picture is formed, but without details. On September 8, 2021, the Verkhovna Rada has finally adopted the long-awaited law "On Virtual Assets", which clarified many ambiguous points. This is especially true for the status of cryptocurrency and the rules of its circulation in the country. Let`s take a closer look at novelties. An ambiguous term Let's start with what the legislator actually means by "virtual assets". There are the following features:  they are an intangible good (cannot be represented on tangible media)  fall under the list of objects of civil rights (that is, they can be owned and be disposed of)  represent an electronic form of a set of data (essentially, they are blocks of information put in order);  the existence and circulation of assets are due to software tools (specific electronic environment). From these features we can draw the following conclusion: virtual assets are not limited to cryptocurrency. Digital currency is part of the concept, but other instruments, such as tokens, NFTs, or even in-game items, fall under the definition. Actually, the actual existence of most digital products, having a certain value, is due to the software environment (ecosystem), either it is blockchain technology, a trading platform, or an online game server. It should be noted that the attempt to define virtual assets was already made in the adopted Law of Ukraine in counteracting money laundering. In this act, they understand it as digital means of payment, which goes against the new definition. As a result, there are now two different explanations for virtual assets, which causes significant confusion not only in regulation but also in interpretation. It is definitely necessary to expect clarifications from competent state bodies. Let's return to the new law. Its application covers legal relations in which the "Ukrainian element" is present:  provider or recipient of services represented in Ukraine;  an agreement according to which the turnover of virtual assets is carried out in accordance with Ukrainian legislation;  the acquirer of assets (or both counterparties) is a resident(s) of Ukraine. The law also introduces an interesting division of all virtual assets into two groups: secured and unsecured. Here again, there is a problem of interpretation. The first category includes products exchanged for (state) currency, the second category includes instruments that can be exchanged only for other digital assets. There is an alternative opinion: that the turnover of secured assets is supported by real goods (money or other property), while unsecured ones are not supported by anything. The latter interpretation is the most credible, as the new law stipulates that virtual assets are NOT means of payment. Moreover, they cannot be exchanged for real goods, be they property, services or money. This significantly narrows the potential for the use of virtual assets not only for commercial but also for civilian purposes. About obligatory licensing The new law states that in some cases, the use of virtual assets will require licensing. The 4 types of activity are mentioned:  storage and management of virtual assets (or its` keys)  servicing of exchange operations with virtual assets (both for other analogues and for real goods);  translation of digital assets;  any intermediary services. A list is quite impressive, but there are some important exclusions:  if your service works with cryptocurrency wallet (it means users can dispose of accumulations into cryptocurrency independently);  If your service works on smart contracts or decentralized protocol, based on which internal transfers are performed. As to intermediary services, everything is more compicated. Actually, any mediation is based on the public share offering. That is why it is subject to licensing. How to get a license? A company that wishes on legal grounds to engage in virtual assets must satisfy legislative requirements. The key role is played by the minimum amount of the statutory capital, which equals 1,19 million hryvnyas (for non-residents it is 5,95 million hryvnyas) in case of storage and administration. For other types of activity (trading, translation and mediation services) the minimum size of the statutory capital amounts to 595 thousand hryvnyas (for non-residents is 2,98 million hryvnyas). The order of the registration of license:  to compose an application and prepare documents.  to pay state fee (68-136 thousand hryvnyas for residents and 340-680 thousand hryvnyas is for non-residents).  to pend review of the request (30 days).  to get a license. The duration of the license is 1 year. No norms about the continuation of legal force of permission are set (we are expecting amendments or explanations from the Ministry of Digital transformation of Ukraine). Notably that non-residents must pay a far greater sum, than domestic companies. The Ukrainian legislator obviously encourages an internal market, getting rid of a strong foreign presence (that, in fact, coincide with modern politics of the state on the whole). Together with an application, the following documents must be prepared: The access code to the copy of the Statute of the company (or the foundation agreement) kept in an electronic file in the database of the Unified State Register of Enterprises and Organizations (USREO);  Funding sources of the statutory capital (where the money are taken from);  confirmation of the actual injection of money;  information about beneficiaries (special attention must be paid to business reputation);  the information about the director and founders;  the check about payment of state fee;  the internal regulations, in accordance with which ones, the privacy policy rules are regulated. In the terms of volume of necessary documentation of licensing is very alike with complete registration of legal entity. It is understood that the state wants the severe adjusting of activity of organizations that will engage in virtual assets. Is it already possible to get a license? The adoption of the law by the parliament is a significant step forward in adjusting and legal market of virtual assets creation in Ukraine. However, the new rules haven`t come into effect yet - their term of introduction depends on making amendments in the Internal Revenue Code. It is yet unknown, when a legislator will decide to enter the renewed system of taxation for such assets. Being "IT-hub" and territory, where cryptocurrency enjoys large popularity, the question of taxes must be decided maximally safely. Despite the presence of obvious gaps in interpretation, a new law on virtual assets gives the official narrative of what takes place and that, how the legal relationships related to cryptocurrency will be regulated. It is to be hoped that in the nearest time the Ministry of digital information will give out the detailed explanations concerning debatable norms.
20/01/2022

We will
call you