Verkhovna Rada Committee for Combating Corruption rules that draft law “On introduction of amendments into Land Code of Ukraine as to legal regime of communal ownership of lands” not in line with anticorruption legislation

Information Department of the Verkhovna Rada of Ukraine Secretariat
28 April 2015, 10:11

According to the authors, the draft law No. 1465 has to settle the issue of transfer of the right to lands and real estate from communal ownership to private ownership [privatization of communal lands].

According to members of the Committee the mechanism of transformation of communal ownership of land into private ownership offered by the draft law is not in line with specific provisions of other legislative acts, which regulate organizational principles of state registration of proprietary and other rights creating conditions for the real estate market functioning.

Besides, the draft law does not name the body authorized to regulate the privatization of communal land plots and real estate, as well as it lacks the order of administrative procedure of execution of respective decision.

A novel of Paragraph 7, Article 8 of the draft law contained value detraction as to transfer of hydro-technical facilities from communal ownership into joint ownership [a hydro-technical facility is an engineering structure for specific water economy activity].

In compliance with Article 5 of the Law of Ukraine “On privatization of state property,” hydro-technical facilities are of national importance and are not subjected to privatization.

Thus, the effective Law of Ukraine envisions that hydro-technical facilities cannot be privatized. Therefore, communal enterprises could not obtain the right to own these facilities.