Farmland leased by Russian business founders in Ukraine proposed to be confiscated under the law

In the presence of Russian citizens among the founders of Ukrainian companies buying Ukrainian agricultural land, the mechanism of special confiscation of property in favour of the state will be applied as provided by the law on the land market, Interfax-Ukraine writes.

"The law will clearly specify in transitional provisions that the access of foreigners is decided on only through the all-Ukrainian referendum. Until then no foreign citizens can participate in the market. Russians are not being discussed in principle. This is an aggressor country, they will buy land under no circumstances. If citizens of Russia appear in transactions through some mechanisms, we carry out special confiscation in favour of the state. The law will clearly spell out this sanction provision," said Roman Leshchenko, Presidential Commissioner for Land Affairs (non-staff).

The law will clearly stipulate that the founders who have the right to buy land of Ukrainian companies can only be citizens of Ukraine having no dual citizenship, living in Ukraine and being the founders of these legal entities, he specified.

"A direct corporate relationship must be established. That is not an offshore company in Cyprus followed another offshore company founded by some person. We are doing this to ensure that there is a transparent ownership structure of legal entities," said the Presidential Commissioner for Land Affairs.

He also emphasized that the Ukrainian society did not accept the sale of land to foreigners, so Ukraine President Volodymyr Zelenskiy clearly stated that this issue would be put to an all-Ukrainian referendum.

Earlier Volodymyr Zelenskiy stated that only Ukrainian agriproducers and Ukrainian companies would be able to buy and sell agricultural land after the farmland market opening. Prime Minister of Ukraine Oleksiy Honcharuk added that the sale of farmland would be realized through public transparent auction with the primary right of redemption by those who now work on the land.

The new edition of the infographic guide Ukrainian Agribusiness 2018/19 is available for download.