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GOVERNMENT AMENDS MODEL LAND LEASE AGREEMENT
Asters, Kyiv, Ukraine,
sep 12, Wed, 2022
On 19 August 2022, the Government adopted Resolution No. 921 "On Amending Resolutions of the Cabinet of Ministers of Ukraine No. 220 of 3 March 2004 and No. 1438 of 29 December 2021."
According to the approved amendments, section "Other rights and obligations" of the Model Land Lease Agreement is defined in accordance with the Law of Ukraine "On Land Lease". The rights and obligations of the parties during the state of martial law, its termination or cancellation in Ukraine or in the corresponding individual localities are determined by clauses 27 and 28 of Chapter X "Transitional Provisions" of the Land Code of Ukraine.
Clause 27 of Chapter X "Transitional Provisions" of the Land Code of Ukraine establishes a special regulation of land relations during the period of martial law, in particular in terms of the lease of agricultural land plots of state/communal ownership, unallocated and unclaimed land plots and land shares (units), as well as land plots remaining in collective ownership for commercial agricultural production for a period of up to one year.
This provision establishes the limitation of the lessee's rights under the above-mentioned lease agreements. In particular, the lessee has no right to:
- compensate his own costs for land improvement
- renew a land lease agreement, conclude a land lease agreement for a new term using the preferential right of the lessee
- transfer a land plot to sublease
- establish a land easement
- change the land plots
- construct the real estate facilities (buildings, structures) on the land plot
- establish the perennial plantations on the land plot
- purchase the leased land plot in case of its sale based on preferential right
- alienate, pledge (mortgage) the right to use a land plot
- divide a land plot, combine it with another land plot
- use common minerals, peat, forests, water bodies and other useful properties of the land for the lessee`s own needs
- change the purpose of land plot
In addition, if such a land lease agreement has expired before harvesting the crop sown by the lessee on the land plot, the latter has the right to harvest such a crop. At the same time, the lessee compensates the lessor for the losses caused by the temporary occupation of the land plot in the amount of the rent for the period from the day the lease agreements expires to the day of the end of harvesting.
At the same time, the Transitional Provisions stipulate that lessees, sublessees of agricultural land plots of all forms of ownership may transfer their right to lease, sublease to another person for a period of up to one year to use the land plot for its intended purpose. Such a transfer is carried out without the consent of the owner of the land plot on the basis of a written agreement on the transfer of the land use right between the land user and the person to whom the right to use the land plot is transferred.
The person who transferred the right of lease/sublease shall notify the lessor (in the case of transfer of sublease right - the lessee) of this in writing within five days from the date of state registration of the relevant agreement.
As a reminder, clauses 27 and 28 were introduced in section X "Transitional provisions" of the Land Code of Ukraine in accordance with the Law of Ukraine "On amendments to certain legislative acts of Ukraine concerning the creation of conditions for ensuring food security under martial law", which entered into force on 7 April 2022.
More information about the changes can be found here.
For more information, please contact Asters' Counsel Anzhelika Livitska and Associate Victoria Kurus.