In Re (#09 September 2014)

Agricultural Losses

by Dr. Oleksiy O. Feliv, LL.M., Olesya I. Stolyarska, LL.M.

Investors intending to use agricultural land for purposes not associated with agriculture, like industrial, commercial development or mining, will very likely deal with compensation of so-called agricultural losses. Agricultural losses are a kind of compensation to the local and central budgets for loss of agricultural land as a valuable national asset. Notably, this charge also applies where agricultural land is going to be rezoned— independently whether it is held by the state, municipality or privately. Agricultural losses are due when the agricultural land ceases to be agricultural…

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