Oleksandr Polivodskyy tells about what businesses should know about land lease and freeze
There are three essential conditions that should be spelled out in a land lease contract: the land to be leased, the term of the contract and the rent, including indexation, the manner and conditions of payment, and liability for failure to pay the rent. The absence of at least one of those components would constitute sufficient grounds for holding such contract as not giving rise to such legal consequences as the parties could expect.
Mr Oleksandr Polivodskyy, a partner at Sofiya Law Form, has told about problems agribusinesses are facing today during his intervention at Legal High School.
Covering legislation development trends, the expert has noted that the initial concept saying that the land should belong to those who work on it has failed in practice. Today, the land is mostly let on lease. And the landlords just earn their income. Mr Polivodskyy reminded that the land freeze has been in effect since 2000. Today, it does not apply to non-agricultural land, private land and land of farm businesses, the repurchase of land, the transfer of land into the government's property, and the exchange of land.
Mr Polivodskyy has disclosed to the audience the aspects of land lease contracts and told about the registration of land titles of foreigners, and provided insights into the illegal takeover problem.
According to the expert, pressing challenges that agribusinesses are facing today include, in addition to illegal takeovers, VAT refund, export VAT, use of the simplified taxation system, occupational safety requirements (in terms of GMOs and organic products), and the trade in pesticides and agrochemicals.
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