The Reform Support Team (RST) at the Ministry of Agrarian Policy and Food of Ukraine has proposed to exclude the possibility of issuing land plots for use on a permanent basis.

According to the relevant draft law prepared by the RST, individuals and legal entities that had the right to permanent use of land plots will be allowed to re-lease them for a period of 50 years or redeem them with a grace period of 30 years.

The document assumes that non-agricultural state and municipal enterprises will automatically receive the right of economic management for the sites that have been in constant use. At the same time, agricultural enterprises of state and municipal forms of ownership will be obliged to re-formalize the land that has been in constant use for leasing for 50 years.

The bill also provides that alienation, pledge of land plots that are in economic management or in operational management are possible when agreed with the executive authorities and local self-governance bodies.

Non-agricultural land plots that are in operational management or in economic management can also be leased solely through land auctions for a period not exceeding 3 years, farmland not more than 7 years.