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Land News from Ukraine

Improvement of Ukraine's positions in the World Bank's ranking Doing Business 2013 is a result of the reform process aimed at simplifying business activities.

This opinion was expressed in an exclusive comment to UKRINFORM by an expert with the capital markets department of the investment holding Pro Capital Group, Dmytro Kovalenko.

"Improvement in the ranking is a result of holding three reforms in Ukraine. First of all, this is the reform greatly facilitating registration of businesses, which allowed Ukraine to fly up by 66 positions at once in this ranking and move from the 116th to the 50th place," Kovalenko said.

As the expert explained, under this reform, the minimum amount of capital for creating a company was determined, as well as changes were made in the field of notarizing corporate documents.

Also, the expert pointed out the reform in property registration (moving from the 168th place to the 149th): this reform has helped to speed up the transfer of property rights through the establishment of effective time limits in the use of the land cadastre.

"And, of course, this is tax reform (moving from the 183rd to the 165th place) - the introduction of electronic forms of filing tax reports for large and medium-sized enterprises," the expert said.

However, Kovalenko noted that it is worth noting that, despite Ukraine has improved its performance in some aspects, there was a deterioration of positions by the following criteria: work with building permits (from the 182nd to the 183rd place), protection of investors (from the 114th to the 117th) and controlling international trade (from the 145th to the 144th).

According to the expert, in assessing investment attractiveness of a country, foreign investors often use the rating Doing Business.

"Ukraine's low positions by the most important criteria, namely, construction permits, providing enterprises with electricity, regulation of tax burden and protection of investors, unfortunately, do not allow exploiting the full potential of the Ukrainian economy," Kovalenko underscored.




The land bank will really work in 1.5-2 years in Ukraine. The Entrepreneurs' Council at the Cabinet is convinced that first it is necessary to adopt the law on the land market, the land cadastre and to delineate the farm lands.

This opinion is supported by at the State Agency of Land Resources.

“A moratorium for the land sale, unfortunately, does not defend the agrarian sector in the majority of cases, but only creates “a roof” for corruption abuses in this sphere. But before opening the land sale market, it is necessary to carry out large work both with improvement of the legislative base and from its practical implementation into life,” ULIE President Anatoliy Kinakh stressed.

This year, UAH 120 million was allocated from the budget for formation of authorized capital of the Land Bank. The financial institution will be capitalized at the expense of land plots, possessed by the state. Currently, there are over 10.5 million ha of such lands in Ukraine.

“An issue of holding the normative money assessment of lands is on permanent control of the President and the government, since the designated works are related to top-priority measures, which influence the revenue side of local budgets,” Chairman of the State Agency of Land Resources Serhiy Tymchenko has said.

According to him, as of October 1, the normative estimated money value of lands was held at 28,872 inhabited areas, which is 96.9% of their total number. Holding of primary normative estimated money value of lands is required by 922 inhabited areas (3.1% of their total number).

It was 100 percent held in Kyiv and Sevastopol, as well as in inhabited localities of Volyn, Donetsk, Zaporizhzhia, Kyiv, Odesa, Rivne, Sumy, Cherkasy and Lviv regions. The largest number of settlements, where the primary normative estimated money value of lands was not held a single time, is in Luhansk - 97 settlements, Mykolaiv (272), Kharkiv (199), Kherson (113) and Chernihiv (82) regions.




The race to buy arable farm land before its global supply is exhausted is well advanced, a major agricultural conference in Canberra was told yesterday.

Derek Byerlee, co-author of a recent World Bank report The Rising Global Interest in Farmland, said it was clear the world was running out of productive land. He said with the world population set to increase to at least nine billion by 2050, and land being lost daily to urbanisation and degradation, foreign investor and corporate land sales -- commonly called the world land grab were on the rise across the globe.

Dr Byerlee said the only productive land that could be irrigated still was in countries such as Brazil, sub-Saharan Africa, the Ukraine, parts of Russia and Australia.

Non-citizens and companies with foreign capital are now allowed to buy nonagricultural land in Ukraine. According to the amendments to the Land Code the Ukrainian parliament passed on October 2nd, legal entities may become owners of land when buying real estate or purchasing land within residential areas for business operations purposes. These legislation changes are part of the current land reform in Ukraine. So far, the parliament introduced bills on the creation of a state land bank and land cadastre. Another anticipated document on the land reform is the Law of Ukraine "On Land Market". The respective draft law is currently submitted to the parliament.


These legislation changes are part of the current land reform in Ukraine. So far, the parliament introduced bills on the creation of a state land bank and land cadastre. Another anticipated document on the land reform is the Law of Ukraine "On Land Market". The respective draft law is currently submitted to the parliament.

The parliament of Ukraine adopted the law stipulating the creation of a land bank on September 6th, 2012. Coming into force in January 2013, the bill regulates the activities of the state land bank, which may issue loans to agricultural businesses. The national land bank will manage state-owned lands, consolidate them and facilitate their development.

Cheap loans (reportedly, twice cheaper than the current commercial offers) available from the state bank are expected to promote development of small and mid-sized business in the rural areas. A number of international experts - from Bulgaria, Germany, Lithuania, the Netherlands, and Spain - contributed to the discussions over the draft of the law.

The bill on state land cadastre was adopted in July 2011, providing the foundation for lifting ban on land purchase and sale. Presently, the moratorium (until January 2013) on buying and selling land in Ukraine is in force due to the danger of detrimental land sales under present-day flawed legislation. The law on state land cadastre stipulates the introduction of the state-wide land registry. It contains information on the location of all agricultural land plots, their borders, area, designated purpose, value, and the condition of the land. Access to the basic information will be free and open to everyone while access to more detailed information will be fee-based.

The absence of an open land market in Ukraine has been one of the main concerns of foreign investors. By setting up a competitive land market, the Ukrainian government is trying to attract additional investments into the Ukrainian agricultural sector.


Kyiv Post


 Ukrainian President Viktor Yanukovych signed into law on Tuesday the bill amending the Law of Ukraine on Banks and Banking concerning the state land bank, the press service of the head of state reported.

"This document sets out the procedure of functioning in Ukraine of a state land bank to be established in accordance with the requirements of the Land Code of Ukraine with the main objective of providing agricultural producers and farmers with loans at low rates (maximum 5%) pegged to the rate of the National Bank of Ukraine," the report reads.

The law provides that the Cabinet of Ministers of Ukraine shall transfer state-owned agricultural land to the authorized capital of the land bank, which is also owned by the state and shall not be privatized.

The law comes into force on the day following the day of its publication.



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