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UKRAINE: About the ownership and long-term lease of land by foreign citizens and companiesPursuant to laws of Ukraine, foreign citizens and any legal persons are allowed to take a lease of agricultural land but is forbidden to buy it (currently the purchase is restricted but it is expected that this restriction will be lifted up within 2-3 years). All large agro-holdings and concerns in Ukraine (including public ones which are listed in London, Warsaw, Hong Kong) do not own agricultural land but only lease it. Current laws of Ukraine guarantee and protect the rights of long-term land lease-holders and their investments, including such mechanisms as "right for priority prolongation of lease" and "right for priority buyout" (after the moratorium on purchase of land is lifted up). All relations between the land owners (usually, farmers) and lease-holders are strictly regulated and formalized, what allows establishing successful agro companies on leased land. Return on investments made into companies with long-term lease contracts occurs usually within 1-2 years, minimizing the risks of investing even in a short-term perspective. All large agro holdings in Ukraine are preparing themselves for purchasing the land, currently being in long-term lease, as soon as moratorium is lifted up; therefore they significantlyincrease their capitalization. Examples of a typical agro holdingstructure is provided in presentation for establishing company "AgriManagement".
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