A formula for the land reform in Ukraine has been formulated, outlining the hows and whats of the reform.
According to Unian, the Minister of Agrarian Policy, Roman Leschenko, has put out a formula for the land reform in Ukraine, outlining how the future land market is going to work in Ukraine.
In line with the formua, land can only be sold to citizens of Ukraine, legal entities are not allowed, foreigners are not allowed, there is a maximum of 100 hectares per buyer, purchase is only possible if the source of the funds is clear, it has to go through banks and notaries.
The notarizing and the bank transactions are there to ensure that there will be no fighting over who owns what, while the transactions are also required to be made public – seemingly to make the market more transparent.
“The formula of land reform that you see is based on a national compromise,” the Leschenko said. “We found the edition of the land reform that united five factions in the Rada that voted for the relevant land laws. Second, we consider this format the most conservative and correct one for our country. It’s a Polish model of land reform. We are not in any hurry, we are not in a rush. We want the Ukrainian public to be convinced that this formula is civilized, correct, and that it protects ownership rights,” Leshchenko explained.
It does seem like bad news for Scandinavian farmers looking to invest in Ukraine – at least if the purchase of land is a central part of the strategy. Nevertheless, Ukrainian Prime Minister, Denis Shmyhal, has great expectations for the land market.
According to Shmyhal, the land market opening will double land prices by the first three or five years, Ukrinform writes. He also stated that all the roughly seven million land owners in Ukraine can expect to benefit from the land reform.
“When it comes to land market opening, it means establishing justice. Land market opening will make land prices increase at least twofold over the first 3-5 years. Such are our assessments, such are the assessments of experts,” Prime Minister Denys Shmyhal said.
The moratorium on sales of agricultural land will be lifted on the first of July this year. Some of the supporting legal changes have been made, but there is still some way to go to make the legal framework ready for a free land market.