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Understanding the disadvantages of a moratorium on the sale of land, the Cabinet of Ministers on December 26, 1992 issued a Decree "On privatization of land parcels" that substantially curtails the list of lands covered by the moratorium. In particular, the Decree states that the six-year moratorium does not apply to sales of privately owned land plots used for subsidiary farming, gardening, construction of houses, cottages (dachas) and garages. According to the official interpretation published by the Ministry of Justice on June 6, 1996 in "Uryadovy courier", at present the moratorium applies to merely 2.2% of agricultural lands.

When in 1992 the exclusivity of State ownership over land was abandoned, almost all agricultural lands were in use by Collective Agricultural Enterprises (CAEs), which had replaced the traditional collective and State farms. As a result the land was shared in all CAEs that had received land into collective ownership. Almost 6 million individuals, former members of nearly 11,000 CAEs, received land share certificates.

After the Decree of the President of Ukraine “On Immediate Measures to Accelerate the Reform of the Agrarian Sector of the Economy” was enacted in December, 1999 the process of the liquidation of the CAEs has begun. This process has been accompanied by the creation on the basis of CAEs the new private (private-leased) enterprises, farmsteads, economic associations, agricultural co-operatives, and other business entities based on private ownership.

Thus, at present the owners of agricultural land parcels in Ukraine are mainly the individuals (physical persons) most of them are the former CAE members. The business entities use the land parcels on the lease basis, the corresponding agreements are concluded between the former CAE members and business entity. The maximum term of lease can not exceed 50 years.

The land plots owned by the individuals can be sold to individuals only. The legal entities can buy the agricultural land plots or Land Share Certificates but can not still confirm their rights on such land plots because the form of the State Dead to Private Ownership of land owned by the private legal entities has not been adopted yet by Verhovna Rada (the Ukrainian Parliament).

The new Land Code approved in first reading eliminates the stated problem and provides for the all legal mechanisms of the purchasing and the sale of land.

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