Confiscation of agricultural land from a foreign national terminates not only ownership but also other rights to the confiscated property, including the right to lease the land – SC CivCC Joint Chamber

A lease agreement for an agricultural land plot concluded by a foreign national within the one-year period allowed for its alienation after acquiring it by inheritance does not violate public policy and is not void. However, the judicial confiscation of such a land plot in case of failure to alienate it within the time limits established by land legislation constitutes grounds for termination not only of the right of ownership, but also of all other rights to the property, including the right of lease.

These conclusions were reached by the Supreme Court sitting as the Joint Chamber of the Civil Cassation Court in order to ensure the uniformity of judicial practice.

In the case under review, the prosecutor filed a claim in the public interest against a foreign national and an agricultural company. The prosecutor stated that the foreign national had inherited two agricultural land plots but had failed to alienate them within one year, as required by part 4 of Article 81 and part 1 of Article 145 of the Land Code of Ukraine. One of the plots had been leased to an agricultural company.

The prosecutor requested that the foreign national’s right of ownership be terminated through confiscation of the plots in favour of the state with their subsequent sale by auction, as well as the termination of the lease agreement and the agricultural company’s right of lease.

The court of first instance granted the claim, stating that the defendant, being a foreign national, had not alienated the land plots within the prescribed period, and therefore the plots were subject to confiscation, while the lease agreement and the agricultural company’s right of lease were to be terminated.

The appellate court reversed the decision of the court of first instance in the part allowing the claims for termination of the land lease agreement and the right of lease, and dismissed those claims of the prosecutor. The appellate court considered that the foreign national had no right to conclude a lease agreement for agricultural land because he was not a citizen of Ukraine. In the court’s view, such an agreement violated public policy and was void, since it concerned agricultural land – a category under special state protection as part of the national wealth.

In reversing the appellate court’s ruling and upholding the decision of the court of first instance, the Joint Chamber of the Civil Cassation Court of the Supreme Court held that a lease agreement for a land plot concluded by its owner – even though a foreign national whose ownership is confirmed by a certificate of inheritance right – within one year from the date of acquiring ownership by inheritance cannot be regarded as contrary to public policy and therefore is not void.

At the same time, the Joint Chamber of the Civil Cassation Court of the Supreme Court emphasised that agricultural land is indeed a particularly valuable category, forms part of the national wealth and enjoys special protection under the law. It is precisely for this reason that such land may be subject to confiscation in the cases prescribed by law, which itself constitutes a manifestation of the public interest.

The failure by foreign nationals or stateless persons to alienate a land plot within the time limit established by the Land Code of Ukraine constitutes grounds for termination of the right of ownership to the land plot by judicial procedure, and not automatically.

Furthermore, the Joint Chamber noted that the application of confiscation gives rise to legal consequences such as the termination of other civil rights (besides the right of ownership). Since confiscation is a compulsory ground for termination of the right of ownership to property and for the transfer of that right to the state, it does not depend on the will of the previous owner. Consequently, all other rights (real or obligational) connected with the confiscated property must terminate as a result of the termination of the right of ownership.

Thus, the termination of a foreign national’s right of ownership to a land plot by way of its confiscation also entails the termination of the right to lease that land.

Resolution of the Joint Chamber of the Civil Cassation Court of the Supreme Court dated 20 October 2025 in case No. 559/2900/23 (proceedings No. 61-12729св24) – https://reyestr.court.gov.ua/Review/131130640. 

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