TO THE PRESIDENT OF UKRAINE
VOLODYMYR ZELENSKY
11 Bankova Street, Kyiv, 01220
Ref. No. 87/09-23 dated 15 September 2023
APPEAL FROM CONFERENCE PARTICIPANTS:
‘NEW CHALLENGES AND OPPORTUNITIES FOR COOPERATION IN THE AGRICULTURAL SECTOR IN TIMES OF WAR.
25 YEARS TOGETHER WITH THE LVIV AGRICULTURAL CHAMBER”
dated 15 September 2023
DEAR VOLODYMYR OLEKSANDROVYCH!
The Lviv Agricultural Chamber, on behalf of 340,000 landowners in the Lviv region and the conference participants, expresses its esteem and respect to you and appeals to you, as the guarantor of the constitutional rights and freedoms of Ukrainian citizens, regarding the following matter.
This horrific war has become a severe test for the country, and since 24 February 2022, a new wave of full-scale invasion has radically changed everything. The Russian aggressor’s constant attacks on Ukrainian cities, villages and ports are depriving farmers of their livelihoods and the world of affordable food at a time when millions of people in the world’s poorest countries are suffering from hunger; it is unacceptable to introduce changes to the circulation of agricultural land.
Consequently, there is a need to protect, through legislation, those who not only provide the country with food but also remain reliable partners on the global market.
In particular, on 1 July 2021, the Law of Ukraine No. 552-IX of 31 March 2020 ‘On Amendments to Certain Legislative Acts of Ukraine Regarding the Conditions for the Circulation of Agricultural Land’ came into force, pursuant to which:
From 1 July 2021 to 31 December 2023, the circulation of agricultural land took place between Ukrainian citizens, with a maximum purchase and sale limit of 100 hectares per person.
From 1 January 2024, alongside individuals, land may also be purchased by legal entities established and registered under Ukrainian law and which are residents of Ukraine, with a maximum land area purchase limit of 10,000 hectares.
As the country is currently at war, it would be advisable to postpone the effective date from 1 January 2024 to 1 January of the following year, once martial law in Ukraine has ended.
The Law of Ukraine No. 2498-VIII of 10 July 2018 ‘On Amendments to Certain Legislative Acts of Ukraine Concerning the Resolution of the Issue of Collective Land Ownership, the Improvement of Land Use Rules in Agricultural Land Areas, the Prevention of Raiding and the Promotion of Irrigation in Ukraine’ (hereinafter referred to as the Law).
In accordance with Article 13 of the Law, if by 1 January 2025 the owner of an unclaimed land share (parcel) or their heir has not registered ownership of the land plot, they shall be deemed to have waived their right to receive the land plot.
Due to the military aggression, for almost two years now, owners (heirs) have been unable to fully exercise their right to register ownership of a land share (parcel).
Furthermore, the Draft Law of Ukraine ‘On the Specifics of Regulating the Entrepreneurial Activities of Certain Types of Legal Entities and Their Associations During the Transition Period’ (registration No. 6013 of 09.09.2021) (hereinafter referred to as the Draft Law) is being prepared for its second reading.
Small and medium-sized farms, including family farms, will cease to exist as they will be unable to re-register their rights to use land plots and will be forced to switch from the simplified system to the general taxation system, which, in the absence of subsidies, will have a negative impact on their performance.
The status of land plots remains unclear, both for those under permanent use and for communal land used by the farm on a lease basis, due to the lack of regulation of this issue, including with regard to the completion of procedures for the division of land plots among members of farming enterprises.
This draft law entails significant unproductive organisational and legal costs. Given the small number of employees on farms, the requirements of Article 5 of the Draft Law ‘Disclosure of information on the activities of enterprises under this Draft Law’ will significantly complicate their operations.
In connection with the ongoing large-scale armed aggression by the Russian Federation against Ukraine, the Decree of the President of Ukraine of 24 February 2022 No. 64/2022 ‘On the Introduction of Martial Law in Ukraine’, approved by the Law of Ukraine ‘On the Approval of the Decree of the President of Ukraine “On the Introduction of Martial Law in Ukraine” of 24 February 2022 No. 2102-IX and other Presidential Decrees and approved Laws of Ukraine on the extension of the term of martial law in Ukraine, we earnestly request that you:
1. To submit a legislative initiative to the Verkhovna Rada of Ukraine regarding amendments to the following legislative acts:
1.1. Law of Ukraine No. 552-IX of 31 March 2020 “On Amendments to Certain Legislative Acts of Ukraine Regarding the Conditions for the Circulation of Agricultural Land” in the part of the Law stipulating the date for the introduction of the land market from 1 January 2024, extending this to legal entities resident in Ukraine alongside natural persons – with this period being postponed to 1 January of the year following the end of martial law in Ukraine. (Paragraph 15 of Article 145).
1.2 of the Law of Ukraine of 10 July 2018 No. 2498-VIII “On Amendments to Certain Legislative Acts of Ukraine Concerning the Resolution of the Issue of Collective Land Ownership, the Improvement of Land Use Rules in Agricultural Land Areas, the Prevention of Raiding and the Promotion of Irrigation in Ukraine”, to amend Article 13 ‘Use of undistributed and unclaimed land plots and land shares (parcels)’, namely – to set the period from 1 January of the following year after the end of martial law in Ukraine.
1.3 The Draft Law of Ukraine “On the Specifics of Regulating the Business Activities of Certain Types of Legal Entities and Their Associations During the Transition Period” (registration No. 6013 of 09.09.2021) in respect of Article 20 ‘Specifics of the creation and state registration of changes to information regarding legal entities of enterprises and their associations during the transitional period’, namely: – by excluding farming enterprises and family farming enterprises from the list of enterprises.
Such changes will ensure full opportunities and equal rights for all participants in the land market, guarantee the observance of the property rights of land share owners, and preserve farming in Ukraine.
We look forward to your understanding and support.
Yours sincerely, and on behalf of the conference participants
Pavlo MUZYKA, President of the Lviv Agrarian Chamber.
Ihor VUYTSYK, Chairman of the Lviv Agrarian Chamber.
