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Land News from Ukraine

A total of 2,572 plots of land with a total area of 1,511 hectares worth Hr 1.1 billion were sold in Ukraine January through October 2012, the State Agency of Land Resources of Ukraine said in a press release.

As the agency said, 124 plots of land (46.25 hectares) worth UAH 28.6 million, and tenancy rights for 616 plots of land (9,645 hectares) worth Hr 34.7 million were sold via land auctions.

Since the beginning of 2012, payments from the sale of land to budgets of various levels have totaled UAH 1.2 billion.

The agency says that January through October last year 2,794 plots of land and tenancy rights for land with a total area of 6,742 hectares were sold to the tune of Hr 599.6 million. In particular, 60 plots of land with an area of 63.06 hectares worth UAH 39.1 million, and tenancy rights for 400 plots of land with an area of 5,794 hectares worth Hr 20.2 million were sold at land auctions.


Kyiv Post

Since the beginning of this year, the sale of non-agricultural land has brought to the state budgets of different levels, including preliminary earnings, 1.2 billion UAH, which is 275 million UAH more than over the same period last year, the State Land Agency press service told.

"For ten months in 2012, a total of 2,572 plots of land with a total area of 1,510.56 hectares were sold. Their value is 1.2 billion UAH. In particular, 124 plots of 46.25 hectares were sold at land auctions for 28.6 million UAH, and the rights to lease 616 plots with a total area of 9645.34 hectares for 34.7 million UAH," the agency says.

Thus, the cost of the plots sold this year is almost twice as much as last year, which attests to the rapid development of non-agricultural land market in Ukraine.




"The state should complete land reform in 2013. We have no other way out," the government's Uriadovy Kurier newspaper quoted him as saying.

Prysiazhniuk said that within this period, Ukraine should "put into the legislative framework the sale of agricultural land, the formation of a state land bank, and the terms of cooperation between the owners of land plots and agricultural producers."

He also said that land legislation should be improved by September-October 2013, when the budget for 2014 is formed.

As reported, a law extending the moratorium on the sale of agricultural land until January 1, 2013 is now in effect in Ukraine.

On December 9, 2011, the Verkhovna Rada passed a bill on the land market in first reading. The document is currently being prepared for second reading.


Kyiv Post

Ukraine intends to expand the scope of cooperation with Japan to exchange experience in the sphere of land tenure, State Land Agency Chairman Serhiy Tymchenko said during a meeting with the management of the Japanese International Cooperation Agency (JICA).

"Representatives of the Japanese delegation expressed interest in the first place in a detailed study of the needs and a search for information on the possibility of implementing programs for cooperation in the agricultural sector, namely the creation of a Land Cadastre," the agency head said.

He noted that, despite the small land fund, Japan uses it extremely efficiently.

Tymchenko has expressed interest in further cooperation and suggested that the Japanese side, as a high-tech country, invest in Ukrainian lands.



Ukrainian agricultural companies have attracted investments totaling nearly USD 1.5 billion, the Ukrainian Agribusiness Club (UAC) reported on Friday.  "Global demand for food in the medium term will continue to grow, driven by an increase in population and, consequently, the per capita consumption in Asia. The areas of lands suitable for agricultural production have been reducing annually, which significantly limits the agricultural offer," UAC Director General Volodymyr Lapa said, commenting on the situation.

Against this background, Ukraine maintains a relatively high investment attractiveness, because it, says Danylo Pasko from Horizon Capital, has significant competitive advantages in costs due to the high fertility of the soil, favorable geographical location, relatively low labor costs and fuel. "Ukraine is also a leader in terms of growth of corn and soybean yields and holds leading positions in a number of global markets for agricultural products and foodstuffs (about half of world exports of sunflower oil). The most priority sectors for investors are crop production, processing (extraction of oil, potentially processing of corn, soybeans, and wheat), handling and port infrastructure," said the expert.

In turn, the Director of Strategic Development at UkrAgroConsult, Bohdan Khomiak, while continuing the theme of investing in agriculture, focuses on the land question. "The land is rich here, but at the same time, there is a legal chaos in land laws. The law on farm land market will not operate without the land register, which the country lacks. This provision, even if the law is adopted, would generate uncertainty, which will not allow to buy and sell land, use it as a pledge in the bank," he emphasized.

Creating a land market in general is not a stimulus for investment in the Ukrainian agricultural sector, says the analyst. On the contrary, the system that exists at the moment is optimal to invest. The presence of developed and cheap lease relations - this is the factor which allows Ukraine to be the most efficient producer of agricultural goods.

The transition to the land market can significantly reduce the amount of investment in the agricultural sector, UkrAgroConsult experts believe.

Another problem hindering investment in the Ukrainian agricultural sector is a limited number of large-scale projects. Given this factor, mergers and acquisitions in the agricultural market, which are currently taking place, is a natural and positive process. Consolidation - this is almost the only and necessary step in the given situation for the subsequent development of efficient production," the analysts conclude.


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