Date of publication: 15 December 2025
Dmytro Hruba, Attorney
Source: Yurydychna Praktyka
Several key sectors drive Ukraine’s economy, and agriculture has been and remains a strategic sector of the Ukrainian economy, attractive to both domestic and foreign investors. The most high-profile and eagerly awaited development for the agribusiness sector was the opening of the agricultural land market in Ukraine, which allowed individuals to purchase up to 100 hectares of land ‘in a single transaction’ from 1 July 2021, and, from 1 January 2024, legal entities (residents of Ukraine) to purchase up to 10,000 hectares.
The issue of access to the agricultural land market for foreigners remains unresolved. However, sooner or later, this milestone will also be reached. The sale of state- and municipally-owned agricultural land plots is also prohibited.
Since the opening of the agricultural land market in Ukraine, demand for the purchase and sale of plots has been growing steadily, although this growth has been significantly slowed by the war.
According to open data published by Opendatabot, since the opening of the land market in Ukraine in 2021, around 340,000 purchase and sale agreements have been concluded, covering approximately 640,000 hectares of agricultural land. The average price per hectare since the market opened has risen from approximately 37,000 to 65,000 UAH. However, the increase in foreign currency terms is significantly more modest (from 1,360 to 1,540 USD), largely due to the war.
This points to the significant potential of the agricultural land market in Ukraine, which is showing steady growth in both prices and the number of transactions. At the same time, transactions involving such properties remain legally complex and require careful verification and planning at every stage. Errors during the transaction process can lead to loss of property, legal disputes, or financial losses. In this article, we will examine the key risks involved in the sale of agricultural land in Ukraine and practical ways to minimise them.
Due Diligence on Land Plots Before Acquisition
When planning transactions involving the acquisition of agricultural land, it is essential first and foremost to verify that the seller holds a valid title and to examine the history of the plot’s formation and the transfer of rights thereto.
Potential risks that may be identified at this stage include:
- the absence of a registered title in the State Register of Property Rights;
- breaches of legislation at the stage of land plot allocation and/or formation;
- the existence of seizures, prohibitions, mortgages, or other encumbrances, and the identification of breaches of legislation during the removal of encumbrances;
- legal disputes concerning the land, etc.
In this phase of due diligence, the grounds for the allocation (formation) of the land plot and the creation (transfer) of land rights should be thoroughly verified, based both on the documentation provided by the seller and on an analysis of current and archived data: in the State Register of Real Rights to Immovable Property, in the State Land Cadastre, etc.
Another mandatory step is to consult the Unified State Register of Court Decisions to search for and analyse court decisions concerning the land plot or its owner.
Identifying Restrictions on the Use of a Plot of Land
It is also important to check the land surveying documentation and the information in the State Land Cadastre regarding the presence or absence of protected areas or other restrictions on the use of the plot of land. Such restrictions essentially require the owner or user of the land plot to refrain from certain actions or activities on that plot. Such restrictions may arise for various reasons, for example, due to the presence of utility networks, nature conservation areas, town planning documentation, etc. Restrictions are subject to state registration in the State Land Cadastre.
Identification of Third Parties’ Rights to a Plot of Land
Most agricultural land in Ukraine is held on a long-term basis by agricultural companies under lease or emphyteusis agreements.
It is worth noting that, as a general rule, the transfer of ownership of a leased land plot to another person does not constitute grounds for amending the terms or terminating the lease agreement.
However, the termination of such a right of use may be provided for in the agreement between the landowner and the user. There are also exceptions here; for example, a lease agreement for agricultural land leased for the planting and/or cultivation of perennial crops (fruit, berry, nut, and grape crops) may not contain provisions regarding the amendment of its terms or the termination of the agreement in connection with the transfer of ownership of the leased land plot to another person.
The Existence of a Right of First Refusal to Purchase a Plot of Land
Particular attention should be paid to the existence or absence of a right of first refusal to purchase a specific plot of agricultural land.
Such a right is held primarily by a person who holds a special permit for the extraction of minerals of national importance as defined by law, provided that the land plot is situated within the subsoil area granted to that person for use (subject to certain exceptions), and only secondarily by the lessee of the land plot.
If, in accordance with the law, a person who has a statutory right of first refusal to purchase the plot cannot acquire ownership of the agricultural land plot, they may transfer their right of first refusal to purchase such a land plot to another person who, in accordance with the law, is entitled to acquire ownership of such a land plot.
Where there is a pre-emptive right to purchase an agricultural land plot, its owner is obliged to register their intention to sell the land plot in the State Register of Real Rights to Immovable Property no later than two months before the date of conclusion of the land plot sale and purchase agreement.
Subsequently, the notary public who is to certify the sale and purchase agreement must notify the holders of the right of first refusal of this intention.
It is worth remembering that in the event of a breach of the right of first refusal, the holder of such a right may bring a claim before the court to have the rights and obligations of the purchaser transferred to them. The consequence of such a claim may be the loss of the purchased land plot and the resulting financial losses.
If the holder of the right of first refusal has not expressed a wish to purchase the plot or has submitted to the notary a statement of waiver of the right of first refusal, the authenticity of the signature, which has been notarised, the transaction may proceed to finalisation.
Drafting a Contract for the Sale and Purchase of a Plot of Land
Following the results of the due diligence process, having thoroughly examined the history of the plot of land and resolved any issues regarding the right of first refusal, the parties may proceed to finalise the terms of the future contract, sign it, and have it notarised.
If there is a right of first refusal to purchase the plot, the parties should appoint a notary in advance, as the notary will be directly involved in communications with the holder of the right of first refusal.
Guidance on the Acquisition of Land Plots: Preparing the Agreement
Ilyashev & Partners Law Firm has extensive experience in advising on the acquisition of agricultural land and due diligence, from projects aimed at expanding the geographical scope of operations of large agricultural enterprises and increasing land banks to advising on foreign investment.
When finalising a transaction, it is important to bear in mind several conditions and restrictions, namely:
- until 1 January 2030, the sale price of agricultural land plots allocated in kind (on-site) to owners of land shares (parcels) may not be lower than their standard monetary valuation;
- payments relating to the purchase price of agricultural land plots under civil law agreements must be made by bank transfer;
- the sources of funds or other assets used to acquire ownership of agricultural land plots must be verified;
- the total area of agricultural land plots owned by a single person may not exceed 10,000 hectares.
Any breach of the requirements regarding the maximum area of agricultural land, as well as its acquisition by a person who is not entitled to do so, constitutes grounds for declaring the transaction invalid and for the confiscation of the land plot.
The sale of agricultural land in Ukraine may only appear to be a routine matter at first glance. It is a legally complex process involving a number of potential risks and requiring heightened legal attention. Competent and comprehensive due diligence, thorough preparation for the transaction, and the involvement of a professional lawyer significantly reduce the likelihood of problems and guarantee the security of the transaction. The success of any transaction depends to a large extent on the level of preparation, so it is important to remember that poor preparation can result in significant headaches and financial losses.
