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Land News from Ukraine

The State Service of Geodesy, Cartography and Cadastre in Ukraine has recently achieved a milestone: the unified National Cadastral System was launched in January 2013. For the first time since Ukraine became independent, paper archives were opened and all data on land brought into a single database in electronic form.

At the same time the public cadastral map has been opened to the citizens and users.

Eurogeographics, the membership association of the European cadastre, land registry and national mapping authorities commented that it already can be said with confidence that the national cadastral system works well. As proof, over 27,000 registrations of new land parcels have been carried out during three weeks of actual work. Through automation of the registration, the process took no more than 5-10 minutes instead of weeks by the previous way of registration. Also during this period, they have issued over 5,000 deeds from the inventory to support land transactions.

Sergey Tymchenko, director general of the State Service of Geodesy, Cartography and Cadastre gave an interview providing more information about the ambitious project, with a budget exceeding USD50 Million which started in 2004 and came to its successful conclusion under his leadership.


 The Cabinet appoints members of the Supervisory Board of the PJSC State Land Bank of Ukraine. Resolution No. 134 of March 4, 2013, says about this, posted on the government portal.

According to the document, the Supervisory Board includes as follows: Director of the Financial and Credit Policy and Accounting Department of the Agricultural Policy and Food Ministry Bahrat Akhidzhanov, First Deputy Chairman of the State Agency of Land Resources Artem Kadomsky, Director of the Debt and International Financial Policy Department Halyna Pakhachuk, Deputy Agricultural Policy and Food Minister Oleksandr Sen and Director of the Executive Support Service Department of the Finance Ministry Roman Chuprynenko.

Note. PJSC State Land Bank of Ukraine is a special state financial institution, whose main task is crediting of agricultural producers on the security of land and other property. The State Land Bank in compliance with the applicable legislation of Ukraine can render short-term, medium-term and (on the security of real estate) long-term (up to 20 years) loans worth up to 70% of the cost of a subject under a pledge. The government took a decision about creation of the State Land Bank on July 2, 2012.



The government plans by 2015 to develop the land irrigation system, making a government-secured $2 billion allocation, Ukrainian Prime Minister Mykola Azarov said at a cabinet meeting on Wednesday.

The premier said that over the past years a trend of sustained high temperatures in summer in southern regions of the country has been seen. Irrigation in the said regions should be considerably increased so that Ukraine is able to maintain the size of its grain harvest.

"Today only 400,000 hectares are irrigated. The total area of irrigated land in 2015 should reach 1.4 million hectares. Thanks to this, gross production of crops for bread could grow to $27 billion. Under the state program on the stirring up of the economy development it is planned to send $2 billion in government guarantees to resume the modernization of the land irrigation system of Ukraine," the premier said.


Kyiv Post

Today, more than one hundred banks lend Ukrainian agribusiness enterprises. But the rates of loans are quite high. Therefore, the State annually allocates funds to make cheaper interest rates for farmers on loans. But this did not satisfy the need of full compensation costs for farmers. Therefore, the Government has decided to establish a State Land Bank. This financial institution will allow farmers to obtain loans at interest rates of 10-12% per annum.

More than a hundred banks lend Ukraine agribusiness enterprises. They give mainly short term lends for various conditions and at different percentages. However, the rate of credit remains high. Thus, the average interest rates of 2012 in Ukraine were 22-24% per annum.

In order to create favorable conditions for farmers in getting loans, it was opened the domestic banking market to foreign banks. These financial institutions would provide cheap loans, including farmers. However, the foreign banks loans cost was only 2% lower than the domestic ones.

Therefore, to reduce the farmers’ costs while paying interest on loans, the government annually allocates funds to reduce interest rates on credits.

Annual demand for compensation funds to reduce loans involved in the current year and the transition of loans borrowed in the previous years is 1.5 billion UAH.

However, the need of compensation funds is met only by 30%.

So, taken into account the experience of the other countries concerning possible ways of interest rates for farmers reduction, the Government has decided to create a State Land Bank. The financial institution has to provide loans to domestic farmers by 10-12% per annum, and also function as a specialized institution in mortgage loans secured by land.

Currently, the financial institution is being actively created. In particular, it was transferred the state budget money on the amount of 120 million USD onto the temporary account at the National Bank of Ukraine. It was also prepared a set of documents for "Ukresimbank" concerning the State Land Bank registration and service of funds.


Ministry of Agrarian Policy and Food of Ukraine

The Extraordinary and Plenipotentiary Ambassador of France to Ukraine, Mr. Alain Remy, welcomed the participants of the Ukrainian-French Seminar “Agricultural land policy: objectives and tools” which was held in Kyiv. He expressed support of initiatives to further cooperation between the parties in the agricultural sector.

French and Ukrainian experts as well as representatives of Land Development Association and Rural Planning (Société d'Aménagement Foncier et d'Établissement Rural - SAFER) shared experience in legislative support for land policy and implementation in practice of reforms in land relations.

Head of the French delegation, Chief Engineer for the construction of bridges, water resources and forestry from the General Food, Agriculture and agricultural areas Council of the Ministry of Agriculture, Food and Forestry Jean-Noel Menard told about the implementation of agricultural land policy in France, which goal is to provide long-term development and security of economically active enterprises.

Roger Zhumel, Chairman of the Department of Land issues in the agriculture sector of Ministry of Agriculture in France informed the participants of the work-shop about the law as an instrument of control over the land market in France. In particular, the speaker raised the question of land management and resettlement of rural areas.

Also the representative of the Agricultural service and Financing Agency Frederick Cardon-Dubois shared French experience of land management at the local level.

In conclusion, the Deputy Chairman of State Agency for Land Resources of Ukraine Ievgen Berdnikov expressed appreciation to foreign experts for the fruitful and effective cooperation and indicated the high level of presentations, accessibility and emotionality of information.

The parties have agreed on further strengthening of partnerships, expressed their readiness to share experience and enhance cooperation in the land relations sphere.



State Agency for Land Resources of Ukraine

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