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Land News from Ukraine

In Ukraine in 2012 the State Land Mortgage Bank will start to work. This was announced on March 5 in Kharkov by the First Deputy Minister of Agricultural Policy and Food Mykola Bezugly.

"2010 is the last year, when commercial banks lend to the village at high interest rates. From 1 January 2012 in our state there will be a transparent and civilized land market. One of the elements of this market will be State Land Mortgage Bank, according to those provisions that we determine when a bank is creating, and also it will provide loans to agricultural producers under the 8-9% per annum, which is significantly less current credit rates ", - said N. Bezugly.

He also said that in the next 3-4 years about 100 billion UAH of credit resources will accumulated in the State Land mortgage bank. | 02.03.2011 In terms of political stability, government has every opportunity to improve the investment attractiveness of agriculture and make it a strategically successful sector of the economy. To do this, first of all, it is necessary to remove the factor of corruption and establish a predictable policy of export. In addition, the investment attractiveness of the agricultural sector in Ukraine will be enforced by the liberal reforms and the land market. This opinion was expressed by the experts of analytical group «Da Vinci AG». According to the analysts, today there are three main groups of investors who are interested in investing in agriculture and could potentially be involved in the sale of Ukrainian land for agricultural purposes. In particular, the representatives of foreign capital, Ukrainian investors working in agribusiness, pro-government interest groups. The current wording (redaction) of the draft law "On the Land" offers to provide the right to acquire agricultural land only for citizens of Ukraine and for the state represented by specialized institutions (fund) or local authorities. The size of the plots, which individual can acquire will be limited. Legal entities will not be able to buy agricultural land. Experts believe that this will reduce the risks of speculation to a minimum, as well as the arrival on the Ukrainian market of the foreign investors in the face of transnational or Arab companies. "We believe that by doing so, the conditions are creating for a monopoly in the market of an agricultural land in the face of public funds. This organization will have first right to purchase the unit on the territory of Ukraine. In addition, the organization will be receive about 3 million hectares from citizens who received the shares, but have not issued any ownership of land, or do not use them ", - analysts say. "In the case of adoption of the law in this form, a group that will control created fund will become the largest landowner in the Ukraine for the first stages of reform. Theoretically, it will be able to pressure on the business structure, operating on the market today. Since the legal entities will not be able to purchase land and be forced to take in lease from fund, or from individuals. Given the fact that a significant number of individuals - are owners of the land in the rural area and they have a very low level of financial security (primarily in senior citizens), many of them will sell shares at the first opportunity to the fund ", - says the survey.

Verkhovna Rada of Ukraine refused to extend moratorium on the sale of agricultural land until January 1, 2015.

The corresponding draft law (№ 7541 from 10.01.2011), that was initiated by people’s deputy from the faction BUTB Vladimir Yavorivsky was supported by 117 of the 226 needed deputies.

The draft law provided to extend the moratorium on the introduction of rights to a land plot (share) in the statutory funds of the business entity and the sale of agricultural land until January 1, 2015, because until today, there were no laws adopted on state land cadastre, the land market, land plots registration, on the integration of agricultural designated purpose lands, etc.

Looking back, as previously reported the State Agency of Land Resources, the sale of agricultural land in Ukraine will be resolved on Jan. 1, 2013.

ukragroconsult | 18.02.2011   Leonid Kosyuk stated confidence on the aforementioned issue, he is one of the richest Ukrainians, owner and managing company MHP, which produces chicken "Nasha Ryaba”. According to the London Stock Exchange in February 2011 the cost of many assets the businessman has exceeded $ 2 billion. This is an absolute record of Ukrainian Agribusiness.On the question of how he sees the development of Ukrainian agriculture, Kosyuk said that the right development model for Ukraine is Brazil, which is today - the biggest player in the global market of food and agricultural market. "Brazil has even been able to oust the U.S. in this market. I think this profile of Ukraine in the long term of 10-20 years. I am confident that in the future, after Brazil and the U.S. in the first five of the largest agricultural countries in the world would be Russia and Ukraine", - he said.

Viktor Yanukovych has announced plans of the authorities to implement reforms in the agrarian sector until 2014. Hereof President of Ukraine said in an interview with television channel ICTV.

"We plan until 2014, almost to "spin "on all aspects of reform in the agrarian sector of the economy" - said Viktor Yanukovych.

As President announced, the representatives of agricultural businesses, which will own the agricultural lands and use it, they should ensure the development of the surrounding villages.

"This is a hospital, a school, a cultural services, clubs and, of course, the roads" - these are the directions of the reforms, said Viktor Yanukovych.

According to him, the reforms should improve the lives of the villagers, which are about 15 million people in Ukraine.

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