The Grand Chamber of Ukraine’s Supreme Court will review a case that could shape land ownership rules for companies with foreign participation. The dispute concerns whether a legal entity created under Ukrainian law, but later owned by foreign individuals or companies, may acquire non-agricultural land for business activity.
The case arose from the sale of a small land plot that had been leased for a communications facility. The tenant argued that its pre-emptive right to purchase the plot had been violated and asked the court to transfer the buyer’s rights and obligations to it.
Why the case matters
The legal issue centers on Article 82 of Ukraine’s Land Code. The rule allows Ukrainian legal entities founded by Ukrainian citizens or Ukrainian companies to own certain land plots. However, the law does not clearly state whether the ownership structure should be assessed at the moment the company was created or at the moment it acquires land.
This ambiguity can affect many enterprises with foreign investment that already operate in Ukraine and use land plots for industrial, telecom or service infrastructure. A strict interpretation could increase legal risk for investors, while a broader approach may support continuity for companies registered in Ukraine.
The Supreme Court also asked the Grand Chamber to clarify exceptions to land auction rules where communications facilities are involved. The outcome will not only resolve one dispute, but may become a reference point for local authorities, investors and businesses buying non-agricultural land.
