Land Lease Agreements in Ukraine: New Rules for Extension and Automatic Renewal

The extension of land lease agreements in Ukraine now follows updated rules set out in the new wording of Article 33 of the Law “On Land Lease”, effective since July 16, 2020. While the reforms simplify certain procedures, they also introduce legal risks—especially for contracts signed before the changes came into force.

Key Changes in Renewal Rules

1. Preemptive right for the lessee

   • Tenants now have the legal advantage to sign a new lease agreement for the same land plot before other applicants.

2. Simplified automatic renewal

   • If the lessee and lessor maintain communication, the agreement can be extended via an additional agreement or by signing a new contract.

   • If communication fails, the tenant must follow the procedural steps of Article 33 to protect their rights.

3. Restrictions for state and municipal land

   • Automatic renewal does not apply if the land is owned by state or municipal authorities and there are no buildings or structures owned by the lessee on it.

4. Applicability to contracts

   • New rules apply only to contracts signed or amended after July 16, 2020.

   • Contracts signed earlier should, in theory, follow the old terms.

Court Practice: Unexpected Interpretations

Despite the clear transitional clause, Ukrainian courts have sometimes applied the new rules to agreements concluded before 07/16/2020.

• In one case, a court ruled that extension should follow the updated procedure regardless of the contract’s signing date.

• This creates uncertainty for tenants relying solely on “old rule” provisions in their agreements.

Practical Advice for Lessees

• Assess dispute risks — especially if the lessor is a local council or state body.

• Secure your position by sending both:

  • A new draft lease agreement, and

  • An additional agreement to the current contract.

• Keep all correspondence and proof of timely renewal requests.

Bottom line:
For foreign and domestic investors in Ukrainian agriculture, land lease security is critical. The legal environment now favors proactive communication with lessors and formal procedural compliance over assumptions based on past rules.

If you want, I can prepare a step-by-step guide for investors on securing land leases in Ukraine under the new regulations, with templates for renewal requests and risk mitigation strategies. This would make the article more actionable for your audience.