All countries of the world have agreed that global food security depends on a successful sowing campaign in Ukraine. This was even stated in his speech on March 29, 2022 at a meeting of the UN Security Council, Executive Director of the World Food Program (WDP) David Beasley.
Beasley added that the war in Ukraine could lead to the largest crisis since World War II. He reminded that Ukraine and Russia produce 30% of the world’s wheat reserves, 20% of corn and 75% to 80% of sunflower oil. 50% of the grain that the World Food Program buys to help 125 million people is produced in Ukraine. According to Beasley, rising food, delivery and fuel prices have increased WFP’s operating costs by $ 71 million a month. Beasley added that “if the war does not end, the world is threatened by famine, destabilization and mass migration.”
The economy must work, and this requires innovation, so that in the face of Russian aggression we can get the maximum result and guarantee the most favorable conditions from the state. And agriculture is no exception. With this in mind, Ukraine is adopting a number of new rules in land relations.
Regarding tax benefits in land relations established by this Law:
1) Provisionally, for the period from March 1, 2022 to December 31 of the year following the year in which the martial law was terminated or abolished, no fee shall be charged or paid for land and land located in the territories on which hostilities are being conducted (conducted), or in the territories temporarily occupied by the armed forces of Russia, as well as for land plots identified by the regional military administrations as littered with explosives and / or where there are fortifications.
2) Provisionally, for 2022 and 2023 tax (reporting) years, the total minimum tax liability for land plots mentioned above is not accrued and paid.
The Cabinet of Ministers of Ukraine shall determine the list of territories in which hostilities are being conducted or temporarily occupied by the armed forces of the Russian Federation.
Major changes in land relations:
1) The sustainability of existing land use relations in 2022 is ensured by recognizing the relevant agreements renewed for one year without the will of the parties and without entering information on renewal of the agreement in the State Register of Real Property Rights of lease, emphyteusis, superficies, land easement, term use of land in respect of which ended after the imposition of martial law on agricultural land.
2) The term for which in martial law may be leased agricultural land of state, communal and former collective ownership is limited to one year, and the amount of rent may not exceed 8% of the normative monetary value.
3) There are strict restrictions on the use of such land, including: a ban on changing the composition of land, sublease, construction, change of purpose of land, etc.
4) Lease agreements are concluded only in electronic form, and land plots are leased without land auctions on the terms specified by law. Such a one-year land lease agreement cannot be renewed, concluded for a new term and it will be terminated upon expiration of the term for which it was concluded.
5) Formation of land plots for the purpose of their lease is carried out without entering information into the State Land Cadastre and without assigning them a cadastral number on the basis of technical documentation on land management for land inventory. The right to lease the leased land plot will not be subject to state registration. Land lease agreements will be registered by the military administration in the Martial Law Register.
6) Free transfer of state and communal lands to private ownership is prohibited; formation of agricultural land plots (except for those leased for commercial agricultural production); land auctions for lease rights, emphyteusis, superficies for state and communal land plots for agricultural purposes.
7) It is prohibited to hold land auctions on lease rights, emphyteusis, superficies on agricultural land plots of state and communal property.
8) Enabling users of agricultural land to temporarily transfer their land use rights to other agricultural producers for up to one year, for the use of land for its intended purpose.
9) District military administrations are empowered to carry out state registration of agreements on the transfer of land use rights by maintaining appropriate registration books.