Автор: admin

31.03.2015
Новости недвижимости.

Кабинет Министров постановлением от 18 марта 2015 года № 137 урегулировал некоторые вопросы упрощения порядка предоставления административных услуг в сфере государственной регистрации вещных прав на недвижимое имущество и их обременений.

В документе указывается, что решение госрегистратора, выписка из Госреестра вещных прав на недвижимое имущество, свидетельство о праве собственности на недвижимое имущество, полученные в электронной и бумажной форме с помощью программных средств ведения Госреестра вещных прав на недвижимое имущество, имеют равную юридическую силу.

Также данным актом внесены изменения в Порядок ведения Госреестра вещных прав на недвижимое имущество и Порядок госрегистрации прав на недвижимое имущество и их обременений.

Предусмотрено, что на официальном веб-сайте Минюста поиск документов осуществляется по индексному номеру, дате и времени формирования свидетельства о праве собственности на недвижимое имущество, извлечения, информационной справки и выписки из Госреестра.

Изменениями установлено, что полномочия госрегистратора по приему и выдаче документов могут исполнять должностные лица органов местного самоуправления, администраторы центров предоставления административных услуг и нотариусы. В соответствии с установленными изменениями были откорректированы их полномочия.

Прием документов включает проверку наличия документа об уплате административного сбора или документа, подтверждающего плату за предоставление извлечения из Госреестра вещных прав на недвижимое имущество, проверку размеров внесенной платы, непосредственное принятие заявления путем регистрации в базе данных Госреестра, изготовление электронных копий документов, поданных вместе с заявлением.

Выдача документов предусматривает возврат заявителю оригиналов представленных им для госрегистрации документов, а также выдача сформированных госрегистратором извлечения из Госреестра, свидетельства о праве собственности на недвижимое имущество (в случае его формирования) и решений госрегистратора.

Кроме того, в изменениях указывается, что госрегистрация прав может проводиться в сокращенные сроки в порядке, определенном Кабмином.

05.04.2015
Новости недвижимости.

Минюст в своем письме разъяснил, как применять нормы Закона относительно полномочий нотариусов и особенностей регистрации производных прав на земельные участки сельхозназначения. Изменения в закон вступили в силу 25 марта 2015 года.

В соответствии с изменениями, нотариусу предоставлена возможность проводить государственную регистрацию:

— прав, производных от права собственности на сельхозучастки независимо от нотариального удостоверения договора, на основании которого возникает такое право;

— права собственности на сельхозучастки, которое возникло и оформлено в установленном порядке до 1 января 2013 года, одновременно с государственной регистрацией производного от него вещного права на такой участок.

 Закон «О государственной регистрации прав на недвижимое имущество и их обременений» дополнен ст. 4-2, которая определяет особенности регистрации производных прав на земельные участки сельскохозяйственного назначения, право собственности на которые возникло и оформлено до 1 января 2013 года. Установлена одновременность государственной регистрации производного вещного права и права собственности на участок (кроме случаев, когда право собственности на такой участок уже зарегистрировано в Государственном реестре прав на недвижимое имущество), на основании заявления о государственной регистрации прав и их обременений, поданного владельцем или приобретателем соответствующего производного права или уполномоченным ими лицом, с учетом положений ст. 16 Закона.

 Так, с целью регистрации производного от права собственности вещного права на сельхозучасток подается одно заявление о государственной регистрации прав и их обременений (относительно иного вещного права). При этом госрегистратором или нотариусом с помощью программного обеспечения Государственного реестра прав на недвижимое имущество формируются 2 заявления: о регистрации права собственности и о регистрации другого вещного права.

  Также предусмотрено проведение государственной регистрации права собственности в случае подачи заявления о государственной регистрации прав и их обременений приобретателем производного вещного права на земельный участок (арендатором или иным пользователем) без представления заявителем документа, на основании которого возникло право собственности, в порядке, установленном пунктом 8-1 части 2 ст. 9 Закона, при наличии информации о зарегистрированном участке в Госземкадастре и до момента автоматизированного переноса в Государственный реестр прав записей (сведений) о вещных правах и обременениях на земельные участки из Государственного реестра земель.

 То есть, регистратор или нотариус получает от территориальных органов земельных ресурсов информацию (справки, копии документов и т.п.), необходимую для проведения регистрации права собственности на соответствующий земельный участок, путем направления запроса в Госземкадастр с помощью программного обеспечения Государственного реестра прав и использует полученную информацию для регистрации права собственности на такой земельный участок.

 При проведении государственной регистрации права собственности и производного от него вещного права на земельный участок регистратор или нотариус оформляет экземпляр выписки для каждой из заинтересованных лиц, по которым проведена регистрация прав. Один экземпляр приобщается к регистрационному делу, открытому на объект недвижимого имущества.

Стоит отметить, что положения ст. 4-2 Закона не касаются порядка государственной регистрации права собственности государства или территориальной общины на земельные участки, сформированные из земель государственной или коммунальной собственности, с одновременной регистрацией производного от права собственности вещного права на такой земельный участок, поскольку особенности ее проведения в этом случае урегулированы ст. 4-1 Закона.

06.04.2015
Новости недвижимости.

5 апреля вступил в силу Закон о дерегуляции от 12.02.2015 г. № 191-VIII. В результате внесенных им изменений, в частности, уменьшено до трех (было одиннадцать) количество существенных условий договора аренды земли.

Так, согласно новой редакции статьи 15 Закона Украины «Про аренду земель» существенными условиями являются:

• объект аренды (кадастровый номер, местоположение и размер земельного участка);

• срок действия договора аренды;

• арендная плата с указанием ее размера, индексации, способа и условий расчетов, сроков, порядка ее внесения и пересмотра, ответственности за ее неуплату.

Кроме того, по согласию сторон в договоре аренды земли могут указываться другие условия, которые в таком случае будут считаться существенными.

В случае, если договором аренды земли предусмотрено осуществление мероприятий, направленных на охрану и улучшение объекта аренды, к договору прилагается соглашение относительно возмещения арендатору расходов на такие мероприятия.

Договор может предусматривать предоставление в аренду нескольких земельных участков, находящихся в собственности одного арендодателя (а относительно земель государственной и коммунальной собственности — земельных участков, находящихся в распоряжении одного органа исполнительной власти или органа местного самоуправления).

Также законодательно закреплен минимальный срок аренды для сельскохозяйственных земель — 7 лет.

14.04.2015
Новости недвижимости.

Кабинет министров Украины своим Постановлением №190 от 08.04.2015 установил сокращенные сроки предоставления услуг государственной регистрации вещных прав на недвижимое имущество — в течение трех дней, а при госрегистрации с выдачей свидетельства о праве собственности на недвижимость, а также госрегистрации права собственности на предприятие как единый имущественный комплекс — в течение пяти дней. 

Согласно приложению к Постановлению, размер платы за такие услуги определен в двойном размере административного сбора за госрегистрацию вещных прав и прав собственности на недвижимость соответственно.

Правительство также установило двойную оплату за сокращенные сроки предоставления информации из Государственного реестра вещных прав на недвижимое имущество в бумажной форме — в течение часа с момента регистрации заявления.

Согласно вышеуказанному документу, госрегистрация обременений станет возможна в течение двух часов, а плата за данную услугу предусмотрена в размере админсбора за госрегистрацию обременения. Изменения вступают в силу через два месяца после публикации указанного Постановления.

17.04.2015
Новости недвижимости.

Сегодня, 17 апреля, вступили в силу изменения, внесенные в Порядок совершения нотариальных действий нотариусами Украины, согласно которым запрет на отчуждение недвижимости теперь уполномочен снимать любой нотариус.

В изменениях устанавливается, что запрет на отчуждение недвижимого имущества (имущественных прав на недвижимое имущество) и транспортных средств, подлежащих госрегистрации, может снимать любой нотариус, а не только тот, который его наложил. Если запрет снимает нотариус, его не накладывавший, он направляет по месту хранения дела, содержащего сведения о наложении запрета, сообщение о снятии запрета.

Также установлено, что при удостоверении аграрной расписки нотариус проверяет отсутствие обременения по сведениям, содержащимся в Государственном реестре обременений движимого имущества. Аграрная расписка заверяется нотариусом при отсутствии обременения (за исключением обременений по другим аграрным распискам). Сведения о предмете залога по аграрной расписке вносятся в Государственный реестр обременений движимого имущества.

Expert Opinion (#06 June 2010);

by Marina A. Tegypko, Dmytro S. Kiselyov

Land issues

Ukraine is the largest country completely located in Europe, with a total area of 603,700 square kilometres. Its location creates possibilities for European investors in a range of industries. The country’s agricultural land provides opportunities for farming and cattle-breeding, although investors should approach this sector with care, due to complications regulating the rights to either own or use land.

An investor may be hindered by burdens and formalities such as a moratorium on alienation of agricultural land, or half-reformed land cadastres. In order to minimise the possible risks a proper and detailed due diligence of the investment object — especially if it takes the form of land plots — should be conducted.

The main objectives of such due diligence should be:

An administrative review, which shall include:
— review of the title documentation to the land;
— examination of lease contracts;
— verification of the land plot in the department for land cadastres and land recourses

Review of the history of the plot:
— initial legalisation (privatisation) of the land;
— investigation of the previous transactions with regard to the land.

Verification of the right of an individual or entity to the land: legal capacity of the landlord.

While conducting the due diligence it is advisable to visit the site, to review encumbrances and restrictions applicable to the land plot, and, if possible, to interview the landlord — or even neighbors to the land, if the sites under review are small and if the landlord gives prior permission.

During due diligence of the land plot, priority shall be given to the review of its title. According to Article 125 of the Land Code of Ukraine, the ownership title for the land plot (or the right to permanent use of the land plot) arises after a corresponding document is obtained.

Most agricultural land in Ukraine is not duly legalized, so it is necessary to confirm that the form of the title act to the land corresponds to the established form of the title act. Attention shall be paid to the following aspects:
— availability in the title act of information on the particular land plot;
— the basis upon which the title to the land plot is registered;
— presence of registration of the document, necessary signatures and seals on the document.

If the land plot is used under a lease agreement, special attention must be paid to the following aspects:
— the form of the lease agreement;
— the availability of essential terms and conditions in the lease agreement;
— state registration of the lease agreement.

The valid Land Code of Ukraine confirms state, communal and private ownership of a land plot. Land for agricultural use is usually leased from individuals who have received certificates to a land plot share on Ukraine becoming independent. In this particular case, the investor or any person intending to lease land in order to produce agricultural products shall distinguish the lease of the land plots and land shares (pai), as these terms provide for different legal relationships, rights and obligations of the parties to the lease.

Leasing of the land share is not the same as lease of the land plot. In the first case the agreement is concluded for the share, the right to which is certified by a certificate; in the second it is concluded for a particular land plot, with clear and defined borders. The owner of the land share certificate does not have the rights of the owner of the land plot, which shall be the object of the particular lease agreement. According to the valid Land Code of Ukraine (and as set out by the Land Code in its 1992 edition) the ultimate document confirming the ownership to the plot shall be state act. Therefore, the holder of the land share certificate does not have the right to dispose of the particular land plot. Moreover, the legislation regarding lease in Ukraine provides that the object of the lease shall be a specific, particularly defined object. If the object of the lease is a land plot, it should be a land plot with defined borders allocated in kind, although in the case of leasing a land share, the land plot is not allocated in kind.

On this basis we may conclude that there is no object of the lease.

There are cases in Ukraine when lease agreements for land shares have been claimed as invalid due to the previously-mentioned grounds. Although this position is understandable up to a point, we believe that each particular case should be resolved separately; we do not agree with the idea that all lease agreements for land share are de facto invalid. There are several legal acts that provide for the possibility to enter into such an agreement and we believe that until a court decides that a particular agreement is invalid, such a lease agreement for a land share may exist and be valid.

Sometimes situations arise when the owner of a land share, having entered into a lease agreement for the land share, legalises his right to the land and obtains the state act for the right of ownership to the land plot. In such a case it is disputable whether or not the lease agreement for the land share is still valid, and whether or not the lessee has the right to use the land plot. According to the model lease agreement for the land share, as approved by the Order of the State Land Recourses Committee No.5 of 17 January 2000, in the event of allocation of a land share in kind the obligations of the parties to the agreement shall be terminated.

According to such provision in the agreement the owner of the land share certificate can terminate the lease agreement at any time by means of legalising his right to the particular land plot (i.e. obtaining a state act). In such case the lessee (usually the producing company) loses his/her right to use the land plot from the time when the state act is issued.
Current laws do not provide for any method of protection of the lessee’s rights. In cases similar to those mentioned above we believe that the lessee of the land share should enjoy the preemptive right to conclude a lease agreement for the land plot allocated in kind.

Should the landlord refuse to enter into a new lease agreement the lessee shall have a right to claim conclusion of the lease agreement in court.

Due to this, the application for a land share lease agreement provides for certain legal consequences — in order to effectively regulate the relations between the parties it is recommended to legalise the ownership of the land plot and allocate it in kind, and also to enter into a lease agreement for the particularly defined plot of land.

Attracting investment through international placements by Ukrainian agricultural companies

Disruptions in the international and local capital markets have led to a reduction in available financing and Ukrainian enterprises, in particular, those in the agricultural sector, are facing significant liquidity problems due to the limited availability of domestic and foreign sources of borrowed funds and increased cost of funding. Many agricultural companies are currently looking at opportunities to raise capital through international stock market instruments, both debt and equity.

Restrictions under Ukrainian law

Direct foreign placements are not seen by most Ukrainian issuers as attractive due to a number of regulatory restrictions, in particular, those imposed by Decision No. 36 of SCSSM of Ukraine of 17 October 1997 (Regulation No. 36).
Pursuant to Regulation No.36, a licence from the SCSSM is required for circulation outside of Ukraine of securities issued by

Ukrainian issuers. As a precondition for obtaining the aforementioned licence, a number of requirements must be complied with, including, inter alia:
— the issuer’s minimum charter capital must be at least UAH 5 million;
— the issuer’s securities must have a prior listing on a Ukrainian stock exchange;
— the aggregate amount of securities of the Ukrainian issuer placed outside Ukraine may not exceed 25% of the issuer’s charter capital; and
— the price for the securities placed by Ukrainian issuers outside Ukraine may not be lower than their nominal value or than the price for such securities on the domestic stock exchange.

In addition, the SCSSM has the discretion to determine the type of placement and the foreign stock exchange on which the securities of the Ukrainian issuer are to be placed.

In order to avoid the aforementioned restrictions, Ukrainian companies usually carry out placements on the international capital markets through indirect structures which involve an intermediary foreign element.

The most common structures for the issuance and placement abroad of various types of Ukrainian securities are analysed below.

IPOs

Most IPOs of Ukrainian companies have a two-tier structure, whereby Ukrainian assets are first transferred to a special purpose vehicle (SPV) usually incorporated in a tax efficient European jurisdiction (Cyprus, the Netherlands, etc.) and in a second step the SPV’s shares are offered on European stock exchanges. The two-tier structure also helps mitigate investors’ risks related to underdeveloped Ukrainian corporate governance standards. Alternatively, or in addition to the two-tier structure, depository receipt programs (GDRs, ADRs) are widely used whereby the shares of the issuer are deposited with a depositary bank, which then issues depositary receipts representing such shares.

The Ukrainian legal implications to be accounted for in the course of pre-IPO restructuring of Ukrainian companies include compliance with Ukrainian exchange control and other regulations, which are complex and require an individual NBU licence for the export of foreign currency in amounts exceeding the allowed (relatively low) threshold in the event of monetary contribution into the charter capital of the offshore SPV, an individual licence of the Ministry of Economy of Ukraine for the investment of property by Ukrainian residents outside Ukraine in the event of non-monetary contribution (e.g. corporate rights) into the charter capital of the offshore SPV, obtaining the Antimonopoly Committee’s approval in the event of change of control (i.e. where over 25% or 50% of voting shares in a Ukrainian company are acquired, subject to further qualifying conditions), as well as compliance with other corporate law requirements.

Eurobonds

For Eurobond issues, Ukrainian companies usually apply one of the following structures:
— credit linked notes, involving an offshore limited recourse SPV as a technical issuer of Eurobonds on the international capital markets against back-to-back loan to the effective Ukrainian issuer;
— loan participation notes (LPN), involving a foreign intermediary bank as a technical issuer
of limited recourse Eurobonds on the international capital markets against back-to-back loan to the effective Ukrainian issuer;
— sub-participation structure, involving an offshore limited recourse SPV as a technical issuer of Eurobonds which sub-participates the proceeds of the issue to a foreign intermediary bank for further on-lending to the economic issuer in Ukraine.
The aspects of a non-direct Eurobond issue to which Ukrainian law requirements would be applicable include SPV incorporation (for the discussion of the relevant Ukrainian law implications, see sub-section “IPOs” above) and the lending element of the transaction.

EU regulatory framework

In the event that a Ukrainian company plans an IPO or a Eurobond issue on one of the European stock exchanges it can do so by seeking admission either to an EU-regulated market segment or to an alternative market segment regulated by the respective stock exchange (Open Market at the Frankfurt Stock Exchange, Third Market at the Vienna Stock Exchange, AIM at the London Stock Exchange, NewConnect at the Warsaw Stock Exchange, etc.).

When choosing to list on a EU-regulated market, the issuer automatically agrees to comply with higher disclosure and ongoing post-listing requirements (including, inter alia, an obligation to publish a prospectus in accordance with EU Directive 2003/71/EC of 4 November 2003 on securities prospectus and financial statements according to the International Financial Reporting Standards (IFRS) for three years), but at the same time enjoys all the advantages of a full listing, including a single European passport, which enables applications for a cross-border offering and admission to listing at organised markets within the EEA.

Domestic energy efficiency drive holds key
to greater economic and geopolitical security
________________________________________

Volume 6, issue 05 June-July 2012

Ukraine’s lack of energy independence has been a constant theme throughout the country’s 20 years of statehood. Despite hopes that the advent of the Yanukovych presidency in 2010 would yield more favourable energy terms from the Kremlin, Ukraine currently appears to be experiencing growing dependence on Russian gas. Meanwhile, multiple declarations by state officials in Kyiv stressing the need to diversify Ukraine’s energy supplies have so far failed to produce any concrete results. While most attention has been focused on the debate over Ukraine’s energy supplies, European practice has shown that energy security actually begins at home. Stable relations with energy supply nations remains a necessity, but domestic energy policy – specifically efforts to reduce wasteful and inefficient energy consumption – would provide Ukraine with a stable footing on which to construct a viable energy policy in a world where ever-decreasing resources result in near-constant price increases. 

Heating costs dominate Europe’s energy consumption

It is common knowledge that building construction and maintenance rank among the biggest drains on energy supplies in any developed country. According to research by Germany’s Federal Ministry of Economics and Technologies, building construction and maintenance currently accounts for 40% of total energy consumption across Europe – making it comfortably the largest single consumer ahead of sectors such as manufacturing and transportation. Approximately 85% of the energy being consumed by building maintenance and construction goes on heating and the provision of hot water. Given the often wasteful energy infrastructure which Ukraine inherited from the Soviet era, it is apparent that there are potentially huge gains to be made by focusing reform efforts specifically on the country’s building sector energy efficiency.

Ukrainian MPs mull new law

The Ukrainian parliament has attempted several times to adopt separate normative acts specifically aimed at increasing building sector energy efficiency. In 2009 and 2010 draft laws were brought before parliament, only for one to be recalled by its authors and the other fail to win sufficient support among parliamentary deputies. The latest draft law on construction sector energy efficiency was introduced to parliament in January of this year and passed its first reading in May. This draft was initiated by the Cabinet of Ministers and is currently being fine-tuned by parliamentary committee ahead of a second reading before parliament. Opinion remains divided over whether a separate law specifically targeting energy efficiency in the building sector should be adopted. Many critics have pointed to the fact that Ukrainian legislation on the subject is already overloaded, leading in many cases to duplication and even contradiction. Any new law which addresses one specific sector in this manner would be particularly vulnerable to these inherent weaknesses and could end up dead in the water. Instead, they argue that changes to a range of existing laws would be sufficient to significantly increase energy efficiency in the construction sector.

Learning from the German model

As Ukraine’s lawmakers debate the issue of energy efficiency it is worth considering the experience of the country’s European neighbours. Germany in particular offers a model for better energy efficiency which could provide Ukraine with a blueprint for its own energy evolution. Germany’s energy efficiency tradition dates as back as far as the early 1970s, when a global oil crisis forced the West German government to rethink its energy policy in order to reduce its exposure to such unwelcome outside shocks. Ever since then, Germany has remained a world leader in the use of new technologies to improve the energy efficiency. The advanced German economy has been relatively well-placed to adapt to the increasing requirements of the energy efficiency sector throughout the past forty years but nevertheless the country’s efficiency experience remains exceptional. Germany’s heating machinery industry plays a leading role not only in Europe but on global markets, while the country boasts a massive 90% global share of the market for renewable energy sourced building heating systems. In 2002 Germany adopted the Order on Energy Efficiency (EnEV) which provides wide-ranging benchmarks for energy efficiency. The federal government’s adoption of energy efficiency norms has supported implementation. This implementation has been made possible by support for technology and energy efficiency innovation. We can also witness strong financial support in Germany for energy efficiency initiatives. State owned German bank KfW Banking Group specifically focuses on financing the development of energy efficiency initiatives and counts on future energy savings creating increased revenues. Increasing legislative requirements and ever-tougher energy efficiency norms have created high demand for the reconstruction and redevelopment of existing buildings in Germany. This has served to create a new sector within the German construction industry, bringing with it new tax returns and revenues for the state coffers.

Energy efficiency certificates and implementation

There are signs that Ukraine is willing to learn from Germany’s successful energy efficiency experience. In Germany each new home must acquire an energy efficiency certificate which then serves as a key legal document in any future resale or tenancy agreements. Similar regulations are included in the draft law which is currently being prepared for its second reading before the Ukrainian parliament. Making energy efficiency certificates a legal requirement could open the door for the implementation of new energy regulations in Ukraine and raise the domestic profile of the efficiency issue considerably.  

Greater efficiency means greater security

In today’s world of limited resources energy is becoming more and more politically potent, as successive energy-dependent Ukrainian administrations know to their cost. In order to develop its competitiveness the Ukrainian economy needs to look to its own energy efficiency. This lesson applies just as much to big business and heavy industry as it does to the individual owners of private residences and apartments.

Dmytro Kiselyov ( dmytro.kiselyov@dk-law.com.ua) a Senior Associate with Beiten Burkhardt in Kyiv. His areas of activity include real estate and construction law as well as commercial, contract and corporate law.

Land Relations in Ukraine

Ukraine owns vast areas of arable land featuring high fertility; over half of the national territory is qualified as “land of agricultural use”.

The land reform was one of the most important reforms, which took place in Ukraine. The reform, in fact, eliminated collective and state ownership to farmland. It is necessary to point out that land reform was transitory and is not completed yet.

The main feature of the Ukrainian land reform was the division of arable lands into socalled pai (a share). A land share (pai) in the legal sense shall not be identified with a land parcel. A land share is only a right to be allocated a piece of land of a certain area. Conversion of land shares into real land parcels with registered ownership is currently going on, though the bulk of land shares were converted into land parcels by the end of 2008. the primary reasons restraining complete conversion are death of landowners, lack of funds to cover necessary land surveying works and services etc.

Upon completion of major stages of the land reform most landowners were not prepared to farm their land on their own and were reluctant to unite for joint cultivation of their plots. therefore, in most cases companies leasing land as parcels or land shares from landowners cultivate farmland. Among such companies there are also foreign investors. It should be noted that leasehold is the only tool for securing rights to land available for legal entities, including those with foreign investments.

The President of Ukraine Victor Yanukovych at the beginning of his office in 2010 declared the establishment of an open and civilized farmland market to be one of his priorities.

It is well known that Ukraine in 2000 imposed a moratorium on alienation of any productive farmland. Under the provisions of the Land Code that was in force until 2012, the moratorium should have been lifted upon adoption of two laws, namely on the state land cadaster and on the land market, but not earlier than January 1, 2012. At present, the moratorium is formally prolonged till January 1, 2013.

The Parliament of Ukraine adopted the Law of Ukraine on the State Land Cadaster on July 7, 2011, but entering into force of the Law was postponed till January 1, 2012 (except for some provisions). At the moment, the state land cadaster as it is described in the Law has not been formed, only certain works were completed, for example, aerial mapping of Ukraine. the draft law on the land market was adopted by the Parliament in the first reading, but later on it was taken for further elaboration. thus, for moratorium to be lifted, it is necessary to adopt the Law of Ukraine on the Land Market.

The newer version of the mentioned draft law has recently been published for political and public discussion. But the current political situation, first of all, the forthcoming election of the Parliament of Ukraine (october 2012), strongly suggests that the Law of Ukraine “on Land Market”, as it stands at the moment, is not going to be adopted in 2012. Statements of the Speaker of the Parliament and the President of Ukraine pointing at social and political significance of the law “on Land Market” and necessity of considerate ap- proach are also suggesting that this law will be dealt with after the elections.

It is worth to mention that the last available reading of the draft law “on Land Market” (as of January 25, 2012) imposes several restric- tions regarding ownership to farmland. the draft law, just like the effective Land Code, directly forbids foreign companies, as well as companies incorporated under Ukrainian law with participation of foreigners, to own agricultural land in Ukraine. Moreover, the draft law goes further and restricts the right to own farmland to citizens of Ukraine, local territorial communities, the state and the land bank. thus, all kinds of legal entities, regardless of the place of incorpora- tion, are excluded from the list of potential owners of farmland.

Similar to all preceding readings of the draft law on the land mar- ket, there is an obvious desire to protect Ukrainian farmland from being acquired by foreigners. But it is unclear why the legislator eliminates from the list of potential landowners all sorts and kinds of legal entities. this is an approach that may decrease investment attractiveness of Ukraine drastically.

The draft law “on Land Market” also limits the area of farmland in possession of one person setting the upper threshold at the level of 100 ha. this is an essential restriction because the profitable conduc- tion of agricultural business requires larger area of cultivated land.

Another negative aspect of the draft is the imposition of ceiling on the area of farmland in leasehold of one person. this area shall not exceed 10% of agricultural land within one district (rayon) and 100 thousand ha on the territory of Ukraine. this restriction represents a threat to the activities of existing holdings and reduces investment attractiveness of Ukraine for foreign investors for whom leasehold is the only available access to the Ukrainian land market.

Current reading of the draft law “on Land Market” also contains rules on consolidation of land and on long-expected rules on land auctions and land tenders.

Under the provisions of the current Land Code, sale of land parcels of state and municipal ownership, as well as leasehold rights there- to, shall be performed at auctions only. this presupposes that law should establish rules of the land sales. this provision was included in the Code in late 2007, but there is no law governing the procedure for land sales so far.

There is a probability that the procedure of land auctions will be defined by a separate law (there have already been published several draft laws on land auctions, one of which was recommended by the profile Committee for the adoption in the first reading); therefore some of issues included in the draft law on the land market may be dealt with in another law, and the draft law “on Land Market” will have to be withdrawn and re-drafted. the same is very possible regarding rules on consolidation of land. the above said confirms a high probability that by the end of 2012 the law “on Land Market” will not be adopted and the existing moratorium will be prolonged.

A public and predictable market of agricultural land shall facilitate the development of agriculture in Ukraine and attract investors, although the latter may have very few options for entering the market in view of the restrictions and limitations embodied in the draft law “on Land Market”. Most likely, different varieties of leasehold will be the only available option for foreign investments.

Dmytro KISELYOV

Senior Associate with international law fim BEITEN BURKHARDT

State Support to Agrarian Sector

Agriculture is a high-priority sector of Ukraine’s economy. this statement is confirmed by declarations of every Ukrainian government with no exception; moreover, the very dynamics of the sector speak for itself. Agriculture was nearly the only sector of Ukraine’s economy, which showed growth during the economic crisis; in this sense the growth of crop production is the most remarkable one since it lasts already since 1990. nevertheless, without the state support, agriculture doesn’t get the necessary vectors and impulses for development.

Besides purely fiscal stimuli, there is also a special Law of Ukraine on measures of state support provided to agriculture; the effective reading of this Law was adopted in 2004 under # 1877, later on it was amended on several occasions (hereinafter referred to as Law 1877).Law 1877 covers all the main directions and tools of state support and stimulation of production of agricultural commodities and development of agricultural markets.

Law 1877 provides the state with the following competences:

•  regulation of prices for some kinds of agricultural goods;
•  regulation of market of agricultural insurance;
•  introduction, upon decision of the Cabinet of Ministers of Ukraine, of security purchases of cereals subject to state price regulation;
•  provision of credit subsidies and reimbursement of leasing payments;
•  provision of budget subsidies to producers of animal products.

In total, state budget 2012 allocates UAH 822,3 million for funding measures of state support to the sector; these funds may be used for:

•  establishment and keeping of reserve stock of certified seed and hybrid seed;
•  selection in crop growing;
•  development of livestock breeding;
•  partial reimbursement of the cost of heavy agricultural machinery of domestic origin;
•  implementation of financial support through the mechanisms of cheaper loans and compensation of lease payments;
•  provision of support to the establishment of agricultural wholesale markets;
•  partial refund of the cost of construction and reconstruction of animal farms and feed plants;
•  funding of measures for protection, restoration and improvement of soil fertility;
•  support to agricultural service cooperatives;
•  partial reimbursement of the cost of construction of new greenhouses; 43
•  realization of selection programs in livestock breeding;
•  subsidies paid per unit of cultivated area etc.

Below some types of state support are described.

Reduction of cost of borrowings for enterprises of the agricultural sector and reimbursement of leasing payments

Agro-industrial enterprises have an opportunity to claim, on a competitive basis, the partial compensation of current interest rates on loans and borrowings in national and foreign currencies. the procedure for use of budget funds meant for the purpose is regulated by the Resolution of the Cabinet of Ministers of Ukraine # 794 of August 11, 2010 (with subsequent changes and amendments). this act provides for the subsidies limited by:

•   maximum double interest rate of nBU effective as of the moment of calculation of the interest on loans issued in Hryvnia. Starting from March 2012, nBU interest rate is 7.5%;
•  10% a year on loans issued in foreign currencies.

It is necessary to note, that reimbursement of interest rates on loans issued in 2007-2009 is performed regardless of effective interest rates provided by loan contracts. At the same time reimbursement of interest on loans issued in 2010-2011 and in the current year is granted within the described above limits.

Loans to which the above-mentioned provisions apply are qualified as follows:

•  short-term (up to 12 months);
•  mid-term (up to 36 months);
•  long-term (longer than 36 months).

It is important that loans eligible for state support also include borrowings restructured in 2010 and 2011. the list of agricultural enterprises and agriculture-related institutions, along with farms of agricultural higher educational establishments, eligible for interest reimbursement, includes:

•  livestock and poultry farms;
•  fisheries and fish processing factories;
•  sugar refineries;
•  grain elevators and canneries;
•  bakeries;
•  national Joint-Stock Company “Hlib Ukrainy ” and its branches;
•  wholesale markets of agricultural products.

Resolution #794 also describes the priority areas of expenditures (compensable) for agricultural enterprises.

Reimbursement of leasing installments is provided in respect of payments made for agricultural machinery and equipment purchased on conditions of financial leasing, according to the list approved by the Interdepartmental expert Council and tender commission, and covers:

•  up to 40% of the cost of machinery and equipment of domestic origin;
•  commission fee of a leasing company equal to 1.5 interest rate of nBU.

Decision on reimbursement is taken by a tender board at MAPF; preliminary selection is performed by tender boards in every region (i.e. in Regions, Crimea, cities of Kyiv and Sevastopol).

It should be noted that the state budget of Ukraine for 2012 provides only for the reimbursement of leasing installments and does not presuppose any special funding for partial compensation of interest rates on loans and borrowings.

Livestock subsidy

The Special Fund of the state budget for 2012 provides UAH 732 million for paying subsidies to enterprises producing animal products. When this brochure was submitted for printing, the procedure for distribution of this sum in the current year was yet to be adopted. But due to the crisis situation with milk procurement prices, Russian embargo on import of cheese of Ukrainian production and high concern of the Government with the problem, we may expect that the procedure will be passed soon. one of possible options is subsidizing of cattle owners on a “per head” basis.

Renewal of fixed assets of agricultural cooperatives

Agricultural cooperatives received UAH 5 million from the state budget in 2011; procedure for utilization of this sum was defined by the Resolution of the Government #272 of March 9, 2011. the Law of Ukraine on State Budget of Ukraine for 2012 did not provide support to coops as a separate expense item, but such support is meant to be realized within overall state funding of agro-industrial complex.

According to Resolution # 272, funds shall be directed to financial support (on a competitive basis) of agricultural service cooperatives consisting exclusively of households, family farms and entrepreneurs for the purpose of acquiring of agricultural machinery and equipment for domestic manufacture.

A coop that has successfully passed through the tender may count on reimbursement up to 90% of cost incurred when purchasing machinery (equipment), provided the coop has already paid to the machinery (equipment) supplier 10% of the cost and concluded an agreement with the respective local department for agro-industrial development. 

Compensation of cost of agricultural machinery

Resolution of the Cabinet of Ministers № 647 of July 28, 2010 (with further changes and amendments) establishes a procedure for the use of funds for partial reimbursement of costs for the purchase of agricultural machinery of domestic manufacture with partial compensation of up to 30% of the cost of agricultural machinery, excluding VAt. Bidders for compensation are selected on a competitive basis by specially set up commissions.

Dmytro KISELYOV

Senior Associate with nternational law fim BEITEN BURKHARDT

What would the signing of an EU Association
Agreement mean for the Ukrainian economy?

________________________________________

Volume 7, issue 07 September 2013

With Ukraine apparently on track to seal a long sought-after EU Association Agreement this November, there is much debate within the Ukrainian business community over the potential impact which this EU agreement – and its wide-ranging free trade provisions — could have on the Ukrainian economy. The Association Agreement signing is tentatively scheduled to take place during the late November EU Eastern Partnership Summit in Vilnius. As that date fast approaches, Ukraine’s possible EU future is beginning to loom larger and larger on the horizon.

With anticipation building in Ukraine, it is worth remembering that securing a landmark EU agreement would not be geopolitically decisive in and of itself. Instead, the signing of an EU Association Agreement would merely signify the start of a long and arduous process of Euro-standardization which must take place across Ukraine if the country – and its economy – is to establish itself as a fully-fledged member of the European community in the future. However, the Association Agreement itself does not provide any guarantees of the future participation of Ukraine in the European Union.

No guarantees: a long way to go

It is still too early to assume that Ukraine is sure to secure an Association Agreement in November. Despite cross-party domestic political support, Ukraine’s parliament has yet to complete its EU wish list of European integration legislation as requested by Brussels. Even if an Association Agreement is signed in Vilnius, the agreement must then be ratified by each European Union member state as well as the Ukrainian parliament, which could significantly delay implementation.

EU Association Agreement: what will it mean for Ukraine?

European government officials and their Ukrainian counterparts agree that the Association Agreement which is due to be signed in November is one of the most comprehensive and progressive of its kind. The document’s provisions for the creation of a Deep and Comprehensive Free Trade Area (FTA) have attracted the most attention and analysis. From a Ukrainian perspective, one of the most attractive aspects of the Association Agreement is the opening up of EU markets to Ukrainian exporters. This access to arguably the most lucrative markets on the planet (the EU boasts a population of 500 million with some of the highest disposable incomes in the world) creates an entirely new world of opportunities for a whole host of Ukrainian industries. However, we should not forget that the Ukrainian domestic market will also be exposed to imports from the European Union which local producers might initially struggle to compete with. This exposure of the domestic Ukrainian market to EU competition could have both negative and positive implications – in the long run, it could actually help boost the quality of local produce while also forcing down the price of EU imports.

Ukraine set to avoid tariff shock therapy

In principle, free trade agreements imply the removal of all barriers to the free movement of goods between signatory countries. In practice, this often means stage-by-stage reduction in barriers prior to the ultimate removal of export and import duties and any additional restrictions to trade among the treaty signatories. Ukraine’s EU FTA agreement provides for the abolishment or essential reduction of import duties for more than 95% of tariff positions. According to the text of the Association Agreement, the EU is required to abolish duties as soon as the FTA enters into force, while Ukraine is permitted to gradually reduce export duties down to zero. This gradual approach could prove invaluable, allowing Ukrainian businesses to take advantage of new EU markets while giving the domestic market time to prepare for EU competition.

Limited EU agricultural opportunities

Agricultural exports are one of the key focuses of the Association Agreement’s FTA provisions. One of the key results of the agreement is the introduction of tariff-rate quotas on all the main types of agricultural goods. Tariff-rate quotas mean that a certain amount of a particular agricultural product may be imported without any import duty, while excess amounts may be imported under a reduced import tariff. It is worth stressing that the modest tariff-rate quotas envisioned in the Association Agreement will likely struggle to reanimate agricultural exports from Ukraine to the EU. In line with a long Brussels tradition of protecting the EU’s own agricultural industries, the EU has shied away from including substantial volumes of duty-free Ukrainian agricultural exports within the FTA. For example, Ukraine will be allowed to supply the EU with 16,000 tonnes of poultry meat annually, increasing to 20,000 tonnes within five years. In turn, the EU will be permitted to annually export 8,000 tonnes of poultry meat to the Ukrainian market, with a gradual increase of annual supplies to 10,000 tonnes. Compared to current poultry production levels in Ukraine, these quotas are insignificant. Perhaps more significant are the tariffs which are applicable for excess quota exports, which are in some instances much higher for Ukrainian exports to the EU than vice versa.
The abolition by Ukraine of export duties on goods traded within the EU is another important aspect of the FTA. At present such duties are applied to more than 50 commodities including such key Ukrainian products as oilseeds, livestock, scrap metal and natural gas. Export duties are to be reduced gradually and eventually abolished within 10 years, while Ukraine will be able to apply some export duty surcharges for exports exceeding certain trigger levels.

Ukraine braces for the ultimate Euro remont

From a Ukrainian perspective, the main advantage of an EU Association Agreement may not lie in the document’s specific free trade provisions. Instead, an EU agreement could see Ukraine moving broadly towards European patterns of development as the country gradually adapts to EU standards and develops comparative institutional frameworks. As EU Directives are implemented across the country, the quality of goods produced in Ukraine will improve until Ukrainian-produced exports meet the highest consumer standards in today’s global economy. This process of EU adaptation will build consumer confidence in the Ukraine brand and will eventually allow Ukrainian goods to find additional new markets, not only inside the EU itself but also throughout other key consumer hot spots like Asia and North America.

The cost of meeting EU standards

The process of EU integration promises to be complex, with many Ukrainian businesses facing tremendous challenges as they attempt to modernize their production facilities to comply with new EU standards. The question of who will pay for this huge modernization undertaking remains ominously unanswered. Inevitably, the main burden of financing this modernization process will fall on the producers themselves.
As they struggle to meet new EU regulations, many Ukrainian producers will also find themselves faced with increased international competition within Ukraine itself. The abolition of duties is likely to tempt many EU producers to enter the Ukrainian market, with Ukraine expected to prove particularly attractive to textile companies and manufacturers of consumer goods.

EU Association Agreement: just the beginning

The signing of an EU Association Agreement is viewed by many Ukrainians as a step in the right direction for the country. Nevertheless, it is important to note that the signing of an EU deal is just the beginning of a long adaptation period. Ukraine must adapt its standards and regulations to bring them into line with EU norms, while broader integration at the legislative and political levels must also take place. In the long run, an EU Association Agreement could serve as a tool to help Ukraine overcome many of the country’s most debilitating post-Soviet vices – namely corruption, the weak rule of law and excessive bureaucratic procedures. However, the long-term impact of an EU deal on Ukraine’s development will largely depend on the manner in which it is implemented.

About the authors: Dr. Julian Ries ( Julian.Ries@bblaw.com) is the Head of Beiten Burkhardt in Kyiv. His areas of activity include cor¬porate, general commercial, M&A, as well as market entries and tax structuring projects.
Dmytro Kiselyov (( dmytro.kiselyov@dk-law.com.ua) is a Senior Associate with Beiten Burkhardt in Kyiv. His areas of activity include real estate and construction law as well as commercial, contract and corporate real estate law.

•  4 Сентября 2007 г.

Дмитрий Киселев, старший юрист МЮФ BEITEN BURKHARDT

В СМИ часто появляются материалы о неправомерных операциях с земельными участками, их самовольном захвате или использовании не по целевому назначению.

Основная масса таких нарушений происходит в Крыму и в Карпатском регионе. Наиболее частым нарушением в сфере землепользования является самовольное занятие земельных участков. При этом далеко не все можно считать самовольным занятием земельного участка. Как известно, выбор земельного участка, согласование его месторасположения и иные вопросы, связанные с передачей земельного участка в собственность, постоянным пользованием, арендой, должны осуществляться в соответствии с положениями Земельного кодекса Украины и принятыми в соответствии с ним нормативно-правовыми актами.

Как оформить землю

Основанием для передачи гражданам и юридическим лицам земель государственной или коммунальной собственности является решение соответствующего местного органа. Одними из основных условий такого предоставления являются определение границ земельного участка и оформление права на него. В соответствии со ст. 125, 126 Земельного кодекса Украины право собственности или право постоянного пользования земельным участком возникает после получения его собственником или пользователем государственного акта о праве собственности (постоянного пользования) и его государственной регистрации. Право на аренду земельного участка возникает с момента государственной регистрации договора аренды.

Земельный кодекс содержит прямой запрет на использование земельного участка до определения его границ в натуре (на местности), получения и регистрации документа, который удостоверяет право на земельный участок. Таким образом, в основе самовольного занятия земельного участка лежит нарушение установленного порядка предоставления земельного участка с определением границ и/или оформления права на него.

Самозахват или отсутствие документов

Часто граждане, которым земельные участки предоставляются в собственность на законных основаниях, приступают к использованию земельного участка до возникновения права собственности (т. е. до оформления правоустанавливающих документов). Некоторые неправомерно трактуют такие действия как самовольное занятие земли. Данное положение можно отнести и к случаям, когда граждане приобретают право на земельные участки на основании купли-продажи, мены, дарения, наследования, но не оформляют в надлежащем порядке правоустанавливающие документы. То есть землепользователь приобрел право на земельный участок и его действия нельзя квалифицировать как самовольное занятие земельного участка.

Следует отметить, что за использование земельного участка без правоустанавливающих документов не предусмотрено какой-либо ответственности. Такое нарушение хоть и входит в понятие самовольное занятие земельного участка, но не может рассматриваться как отдельное нарушение.

В отношении же ответственности за собственно самовольное занятие земельного участка следует отметить, что Кодекс об административных правонарушениях устанавливает ответственность в размере от 1 до 10 необлагаемых минимумов доходов граждан (1 НМДГ — 17 гривен), а должностных лиц — от 8 до 15 необлагаемых минимумов доходов граждан.

Уголовная ответственность наступает в случае, когда размер ущерба, нанесенный действиями лица, составляет сто и больше необлагаемых минимумов доходов граждан, а также в случаях, когда самовольное занятие происходит в отношении особо ценных земель, земель в охранных зонах, зонах санитарной охраны, санитарно-защитных зонах или зонах особого использования земельных участков, а также в некоторых других случаях, предусмотренных в Уголовном кодексе.

Источник :delo.ua