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Land News from Ukraine

President of the U.S. agrarian company Harmelia John Shmorhun told a press conference on Wednesday. "Ukraine grows an average of 50 million tons of grain, 40 percent of which is exported (20-25 million tons). Stable domestic consumption makes up about 20-25 million tons. It has the ability to boost production to 100-150 million tons. So, Ukraine is able to export 100 million tons of grain,” Shmorhun said.

However, he said that if compared with the biggest exporter, the United States, which currently exports 77 million tons, the highest potential of Ukraine is 100 million tons. Investments are needed. According to the World Bank, there should be around USD 50 billion,” the head of the agricultural company said.

Harmelia Holding President also outlined a range of issues regarding the land lease. He stressed that the minimum terms of the lease must be 10-49 years. Therefore, the investor invests in the leased land, gets the harvest in 2-3 years, if the land is in a poor condition. "So, we invest, we get the harvest in three years, and the contract for 5 years, after which the land is taken away," John Shmorhun stressed.

Note. Agroholding Harmelia, which is included into a group of companies SigmaBleyzer (the U.S. investment company that provides large investments through controlled investment funds in various sectors of the Ukrainian economy) and specializes in growing grain and oilseeds in Kharkiv and Poltava regions. Since January 2010, Harmelia concentrated more than 70,000 ha of farmland.



President Viktor Yanukovych of Ukraine has eliminated the working group analyzing the state of compliance with the law in the sphere of land relations.

This is specified in the order of the head of state, posted on the official presidential website.

"In accordance with Paragraph 28, Part 1, Article 106 of the Constitution: to eliminate the inter-departmental working group for analyzing the state of compliance with the legislation in the sphere of land relations," the order says.

In addition, the president's June 23, 2010 order on the establishment of the working group, as well as the order dated August 12, 2010 on changes in its composition, was recognized invalid.


The Ministry of Agrarian Policy and Food expects the interest rates on loans to small and medium-sized agricultural enterprises to fall with the beginning of operation of the State Land Bank, the ministry announced in a statement.

"With the beginning of operation of the Land Bank, farmers will be able to obtain loans at rates that are 10-15% lower than commercial banks are presently offering. The primary beneficiaries of this will be farmers and small and medium-sized agricultural enterprises," the statement said.

According to the ministry, the average interest rates at which loans were obtained in Ukraine in 2012 were 22-24% per annum.

According to Bahrat Akhidzhanov, the director of the department of financial and credit policies and accounting, the operations of the Land Bank will be more effective if they focus on lending to certain sectors of agriculture, such as dairy cattle.

As Ukrainian News earlier reported, the Parliament re-created the State Land Bank on September 6, 2012, by adopting a new version of the draft law No. 10043.

President Viktor Yanukovych appointed five members of the supervisory board of the State Land Bank on March 21.


Ukrainian News Agency


This was emphasized by the head of the State Land Agency's department in Rivne region, Svitlana Bohatyrchuk-Kryvko, at a meeting of the Congress of Local and Regional Authorities of the Council of Europe in Strasbourg, the land agency told.

"The introduction of the National Cadastral System in Ukraine largely determines the success of reforming relations, particularly, in the area of state land tenure and use, and also marks the introduction of the new rules for changing the ownership of land," Ukraine's representative to the Congress says.

Special attention was given to the subject of ethics, prevention and combating of corruption in the government.

In turn, the Congress representatives expressed willingness to provide the necessary expert assistance to further improvement of the Ukrainian land surveying services.





The amount of financing, calculated for field work, does not take into account the capital investment required for the technical and technological re-equipment of production, analysts with the Ukrainian Agribusiness Club (UAC) said at a news conference.

"Introducing the latest technologies to compete in foreign markets requires capital investment of UAH 7,000-10,000/hectare. Based on the amount of land, which is cultivated by agricultural enterprises in Ukraine (about 18 million hectares), the need for investment capital in crop production is about UAH 150 billion," UAC executive director Oleksandr Verzhykhovsky said.

He added that such funding can only be provided from domestic sources, so it is important to raise funds in the world markets.

In particular, the expert said, attention must be paid to the investors from the East - China, Singapore, etc. "One has to know how to work With Asian investors, it is a long and specific process, but it is important to begin to achieve positive results in cooperation," he stressed.

Verzhykhovsky also reported that more details will be discussed at the fourth Investment Agribusiness Forum, which will be held April 16 in Kyiv.




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