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Wednesday, January 17, 2007

Real estate in Ukraine (land issues)

Rick from TryUkraine! asked me to write about real estate in Ukraine for foreigners. I've placed good article about land law, but there are some good explanations about real estate in Ukraine in general.

Real estate in Ukraine (land issues)

By Arthur A. Nitsevych, attorney-at-law within International law offices & Veritas legal advisers from Ukraine.

On October 25, 2001 the Parliament of Ukraine adopted a new land Code which came into effect on January 1, 2002. In keeping with the new Land Code land is finally deemed as an object of private ownership rights. So, landowners have the right to sell, exchange, donate or pledge their plots.

Finally investors can feel more secure. First, now they can deal with actual owners of land. Second, land, unlike movable property, is extremely difficult to hide or move. So, foreign investors are also able to receive something of real value if their Ukrainian counterparts fail to fulfill their contractual obligations.

No doubt, the adoption of the above Code together with other vital performances gave a strike to foreign investment into Ukraine. For instance, on May 17, 2004 Bunge Limited, an integrated, global agribusiness and food company, founded in 1818 and headquartered in White Plains, New York, announced that its European operating arm, Bunge Europe, had entered into a 50-50 joint venture with Estron Corporation to build an oilseed crushing plant in the port of Ilyichevsk, Ukraine. The new plant is adjacent to the grain export terminal owned by Estron Corporation. The plant's projected crushing capacity is 600,000 tons per year, and it is expected to be operational in early 2005. The plant, as a client of the terminal, will have access to the terminal's expanded capacity of 240,000 tons of storage space with two Panamax vessel loaders. Who would think it is possible if the land matter cannot be solved?

Download full article here

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