Photo by Jérôme Bussière on Unsplash

It has been almost two weeks since the land reform and 532 agreements have been concluded according to the Ministry of Agrarian Policy and Food.

The land market has been opened with the controversial land reform passed by the Zelensky government. Since the law was officially introduced on the first of July, there have been 532 finished land agreements, Kyiv Post reports.

The largest amount of land sold so far has been in the Kharkiv Oblast, where 107.1 hectares was sold, followed by Poltava Oblas (93.8 hectares) and Dnipropetrovsk Oblast (61.1 hectares).

Only Ukrainians are currently allowed to buy land and with an upper limit of 100 hectares per person. From January next year, Ukranian companies will also be granted access to the land market. Foreigners are denied access until it has been approved on a nationwide referendum.

The most important reform

Reinstating a market for arable land has been dubbed the “most important” reform for Ukraine by the prime minister Denis Shmyhal. However, it was only passed after intense struggle in the parliament, where MP’s against the law tried to filibuster the law. Multiple demonstrations against the reform also took place.

The land reform was since then watered down from a completely free market to the version of today, where there are strict limitations on entities allowed to buy and ownership. Still, it was enough to please the IMF, who was the driving force behind the law to begin with. The law was partially passed because it was a requirement from the IMF for Ukraine to receive the first tranche of a 5 billion USD loan.

Still, the amount of hectares sold are minimal. Because of the limited infrastructure around agriculture, many of the larger farming companies have much larger pieces of land to work, as a large volume is needed for them to sustain the infrastructure needed to keep them profitable.

Still, the land reform market has been introduced, and it has been proven to work.