New rules for sale and lease the state and municipal land

Verkhovna Rada passed an bill which will change rules for land sites given for commercial building. All state or municipal owned lots will be sold or leased only through the opened market auctions. It is a very progressive bill which allows to get land with clear and fair procedure. And local budgets will increase their income from land operation.

Before that fact the land often has been issued with inside or hidden relationships between local authorities and some companies. And now in the addition to this bill we have to look out rules and term from this one.

But. Agricultural land (see moratorium tag) and land sites where placed on an object for privatization, will not cover under the auctions. This rule covers land with private property placed on, too. Such land have to be sold with market fair price, i.e. under the similar auction prices.

I have to mention, that such auction have been offered in some cities before that bill, Odessa, for instance. But without given bill the results of such auction could be rejected in a commercial court.

In the last time huge amount of land in Kiev was distributed without any auctions, however Kiev major Leonid Chernovetsky had assuring absolute opposite early.

And some experts say that Kiev has lost USD 120-160 mln. annually, and giving about 500 land site in the same period.