Foto af Johny Goerend hos Unsplash

The moratorium on sales of agricultural has been lifted, starting from July this year. But that does not mean that the market will be ready.

In today’s Ukraine, selling off farmland is illegal. Instead, hundreds of thousands of land plots are in the hands of just as many owners, who in many cases rent out their land to professional farming companies.

The result is a burden of bureaucracy plased on agricultural companies having to manage thousands of rent agreements, while the sector is craving investments. As a result of that, the International Monetary Fund demanded, that the moratorium would be lifted.

And so, the Ukrainian Parliament did just that last year, and from the first July, sales of land in Ukraine will be legal again. However, the supporting legislation is not entirely in place yet, a member of the Verkhovna Rada Committee on Agricultural and Land Policy has said.

One law is not enough

To begin with, the land reform was a watered down version of the first initial draft bill. To begin with, foreigners are not allowed to buy farmland in Ukraine, and there are other questions raised like do the farmers actually own the land or does the state?

More importantly, it is unclear what the procedure for the assessment and sale of land is, the Verkhovna Rada Committee on Agricultural and Land Policy, Serhiy Labazyuk, said in a statement on the website of the For The Future Party, according to Unian.

“The next six months after the opening of the market, the Rada and the Cabinet of Ministers will be obliged to urgently finalize the legislation and pass the bills that we recommended last year. So, a full-fledged launch of the land market is possible only in this format. Based on my projections, this won’t happen before 2022,” he added.

It is uncertain why Labazyuk, a member of another party than that of the president, have concluded that it will take a year to finish the legislation, but there is still a lot of supportive laws to be drafted and passed before the moratorium is definitively lifted in three months.