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Land News from Ukraine

The Land Bank charter has been approved by the Government and published in the Uriadovyi Kurier newspaper. According to the charter, the bank is a public joint stock company, whose sole shareholder is the state represented by the Cabinet of Ministers of Ukraine. The bank's authorized capital is 120 million UAH.

 The decision to change the authorized capital was adopted by the Cabinet and agreed with the National Bank, the State Land Agency told.

"The board of directors of the bank and its chairman are appointed by the supervisory board of the financial institution in agreement with the National Bank for a term not exceeding 5 years. Meanwhile, the procedure for the appointment of the supervisory board is not specified," the agency says.

Under the law, the composition of the supervisory board of the Land Bank shall be appointed by the Verkhovna Rada, the President and the Cabinet of Ministers.

The goal of the bank, according to its charter, is the creation of favorable conditions for economic and agricultural development, land market functioning, as well as support for domestic producers, especially small and medium farmers.




Development of the export potential in the agrarian sphere may turn Ukraine into a leading player on the world foodstuffs market in five years.

This was emphasized by head of InvestUkraine, a structural subdivision of the State Agency of Investments and National Projects, Serhiy Yevtushenko at a round table “Problems of the Agrarian Sector of Ukraine Development” in Kyiv, the agency's press service informs.

“Ukraine has all prerequisites for such a statement. First, this is availability of natural resources in the form of black soils (30% of world stocks), which make up 54% of arable lands in the country. Another factor is that up-to-date technologies start to be implemented in Ukraine's agriculture,” the expert noted.

The InvestUkraine head also paid attention to the fact that large, according to world standards, companies with a land bank of 300,000-500,000 ha are being created in Ukraine. They all are working according to world standards and enter western exchanges, in particular, the Warsaw, Frankfurt and London Stock Exchanges. “They receive very serious assessments from financiers, respectively their capitalization grows rather quickly. In other words, money comes to this sector, which creates real wealth for their stockholders and it occurs quicker against other sectors,” Yevtushenko believes.

At the same time, he expressed his opinion regarding measures, which should be taken for fundamental changes in the sector. In particular, the matter concerns implementation of private property for land, which will enable agricultural holdings to feel great confidence in long-term planning of their activities.

Separate efforts, in his conviction, should be aimed at stimulation of development of the export-oriented infrastructure in the agrarian sector, “since very soon, we will lack production capacities.” This concerns, primarily, expansion of the infrastructure in the railway and river transport, at ports, “including construction of new ports,” the analyst said.

He also stressed that a mandatory condition is realization of complex state programs on boosting domestic production of agricultural machinery. “Currently, we lack the agricultural machinery and it is not produced in Ukraine, but is actually fully imported. This is simply spending of the resource, when, having such a consumption market, we do not have domestic production,” Yevtushenko stressed.




The extension of the moratorium on the sale of agricultural land until settlement of issues related to the trafficking of land has removed political speculations on this subject.

This opinion was expressed by the head of the State Land Agency, Serhiy Tymchenko, during a press conference at the Cabinet of Ministers.

"The bill was adopted on first reading yesterday. It extends the moratorium on the sale of agricultural land, just not as usually for a year, but until a final settlement of the question," Tymchenko said.

"It has removed speculations. The moratorium will be lifted when the rules governing the circulation of land are set," he added.

October 16, 2012, the Verkhovna Rada of Ukraine adopted as a basis the law on amendments to the Land Code of Ukraine (on the turnover of agricultural land). The law proposes extension of the moratorium on the sale and change of purpose of agricultural land until legal regulation of issues involved in turnover of this land.



 People's deputy of Ukraine, head of the Party of Regions parliamentary faction Oleksandr Yefremov said that he does not rule out a variant of holding a referendum on privatization of farmlands.

He has said about this at a press conference at the official press center of the Party of Regions on Wednesday, October 17.

“We understand that it is necessary to discuss everything with citizens and we approach the land reform very cautiously. We are preparing relevant laws. The main problem is disposal of farmlands. Today, a person has a right for the land, but he/she is not able to dispose of it. Therefore, I do not rule out a variant of holding a referendum on this issue,” the party's press service cites the parliamentarian.

As reported by UKRINFORM, the Verkhovna Rada adopted a bill in the first reading, submitted by Yuriy Miroshnychenko, on prolongation of a moratorium for land. The law will prolong a moratorium for the sale of farmlands until the moment the law on the land market is adopted.




Agriculture is a promising sector of investment in Ukraine's economy. Ukrainian President Viktor Yanukovych announced this at the 5th International Investment Forum in Donetsk.

"Agriculture is a promising sector of investment," the head of state said.

He noted that this was stipulated by a rise in food prices in the world and that Ukraine has huge prospects for increasing agricultural production. Yanukovych said that the prospects of investing in Ukraine's agricultural sector were underestimated.

According to the president, the creation of the land market will promote this process. Among other areas attractive for investment, the head of state called tourism, transport infrastructure, including intercity transportation, the revival of river transport, and inter-regional flights.



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