On 24 March 2022, the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On amendments to certain legislative acts of Ukraine for creation of conditions for food security during the period of martial law".
It is aimed at simplifying the procedure for obtainment of agricultural land use rights during the period of martial law to conduct the commodity agricultural production.
This law enters into force on the next day following its official publication. Given that the law has not yet been signed by the President of Ukraine and has not been published, our comments are based on the text of the relevant draft law.
During martial law, lease, emphyteusis, superficies, easements agreements regarding agricultural lands (state, municipal, and private), which expire after the imposition of martial law, shall be automatically renewed for one year without the will of the parties and the need for entry of the relevant information to the register.
District military administrations are empowered with authorities to lease out the state and municipal agricultural land plots for commercial agricultural production without conducting tenders with the following limitations:
lease term shall be up to 1 year, which cannot be renewed;
rent cannot exceed 8% of the normative monetary evaluation;
tenants shall be limited in some rights (to receive compensation for improvements, have pre-emptive rights to renew the lease term or purchase the land, sublease the land, etc.);
lease agreements shall be executed exclusively in electronic form;
formation of a land plot for lease by the military administration shall be carried out without entering information about it into the State Land Cadastre and assigning it a cadastral number, on the basis of technical documentation for land inventory, which shall be approved by the military administration;
the lease right shall not be subject to the state registration, and the lease agreement shall be registered by the military administration in the Book of registration of land tenure and land use for the period of martial law;
if the agreement has expired before the harvest sown by the tenant, the tenant has the right to harvest it subject to a rent compensation.
Tenants, subtenants of agricultural land of all forms of ownership may transfer their lease, sublease rights up to 1 year to another person for the use of land for agricultural purposes without the consent of the owner under a written agreement in electronic form. Such agreement shall be registered in the Book of registration of land tenure and land use for the period of martial law, and the lease right shall not be registered.
Termination of martial law will not be the ground for termination of the above mentioned agreements.