Farmland market in Ukraine to be launched from July 1

The farmland market in Ukraine will be launched, as scheduled, from July 1, 2021; until that time the parliament will adopt a number of necessary by-laws to complete the land reform.

This was announced at a press conference by Minister of Agrarian Policy and Food Roman Leshchenko.

"The main processes that we need [to launch the land market] are the adoption of by-laws – they have already been finalized," he said.

"I'd like to assure you that a number of regulations will be adopted in June, and on July 1, as scheduled, the ban [on the sale of farmland] is to be removed, the market is to be launched," he said.

Leshchenko said that the government and the Verkhovna Rada were working to provide land market players with financial instruments.

In particular, in early June, the Ukrainian parliament will pass a law on the creation of a partial loan guarantee fund for small-sized farmers, which will facilitate the issuance of loans for the purchase of farmland.

Also, the government will temporarily expand its affordable loan program to farmers who are going to buy land.

Read alsoGovernment predicts price of farmland to double in Ukraine in next two to three years

Launch of farmland market in Ukraine

• On November 14, 2019, a bill on the lease and sale of state-owned and municipal land via e-auctions (No. 2195) passed its first reading in parliament.
• Ukrainian agribusinesses urged lawmakers to back that bill.
• On April 28, 2021, the Verkhovna Rada adopted a comprehensive bill on deregulation in the field of land relations.
• Bill No. 2194 provides for the transfer of state-owned land outside villages and towns (except for land that the state needs to perform its functions) into municipal ownership of village and town councils or territorial communities. The latter are also empowered to change the designated purpose of privately owned plots of land.
• In addition, it is proposed that the powers of the State Service for Geodesy, Cartography, and Cadastre were revised.
• On April 28, 2020, President Volodymyr Zelensky signed a bill on amendments into law to launch the farmland market in Ukraine from July 1, 2021.
• The law foresees gradual land reform: from July 1, 2021, citizens of Ukraine will be able to buy farmland plots capped at 100 hectares. At the second stage, i.e. from January 1, 2024, the cap will be raised to 10,000 hectares, while legal entities will also be allowed to acquire land plots.
• On May 13, 2021, it was reported the Constitutional Court of Ukraine on June 3, 2021, would start considering a motion filed by a number of lawmakers challenging the law on farmland turnover.
• On May 18, 2021, the Verkhovna Rada adopted a draft law on the sale of land under new rules.
• On May 19, 2021, lawmakers managed to unblock the signing of the law on deregulation of land relations.
• On May 24, 2021, Ukrainian President Volodymyr Zelensky enacted law No. 2194 on deregulation of land relations.