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Perspectives of agricultural land market of Ukraine


MyLand - 02/02/2011:


Mykola Kalyuzhny, Deputy Head of the State Agency of Land Resources of Ukraine, held a briefing for media on February 1, 2011. The focus was on the agricultural land market.
Mr Kalyuzhny held that agricultural land shall be put into market circulation. He told media about the draft law on land market which is going to be submitted soon to the consideration of the Parliament, as soon as it is approved and agreed upon by ministries.
The Agency is expecting that the law on market circulation of agricultural land will be put into force on January 1, 2013. Further delay with lifting of moratorium is explained by the necessity to pass laws on land market and land cadastre, as well as numerous by-laws, Mr Kalyuzhny said. He stressed that Ukraine is the only post-Soviet country without the law on land cadastre.
Current reading of the draft law on land market does not provide for the right of legal entities to buy and to own agricultural land. At the same time Mr Kalyuzhny said that fears of foreign expansion and massive acquisition of Ukrainian black soils have been exaggerated. He said that drafters of the law on land market installed into it reliable tools for prevention of the said. But this, he noted, may suspend foreign investments into Ukraine’s agriculture. Nevertheless, the top task is to secure interests of our citizens, announced Mr Kalyuzhny.
The draft law also provides for the establishment of the Fund of Agricultural Land; this Fund is to be entrusted with the task of buying land from citizens and leasing it out. The Fund is to be subordinate to the Cabinet of Ministers or the Ministry of Agrarian Policy.
Several persons will have pre-emption right in cases when land owners are going to sell their plots (neighbors, local farmers, local authorities, the Fund). If none of them is willing to buy, landowners are free to sell their land to anyone.
The draft also provides for the range of limits put on the area of agricultural lands concentrated by one owner. The said are going to vary from 100 ha in the Western Parts of Ukraine and up to 2000 ha in the Eastern Parts of Ukraine.


Center for Land Reform Policy in Ukraine - 2011



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