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According to Nizalov, the moratorium and land reform concerns the rights to private property of about 7 million people who have received land in private ownership during privatization.
Director of the project "Support for reforms in agriculture and land relations in Ukraine" Denys Nizalov has said the lifting of the moratorium on land sales will contribute to the annual growth of Ukraine's gross domestic product (GDP) by 1–1.5%.
"The moratorium on land sales was introduced back in 2001 and extended many times. In fact, it restricts the rights of landowners in both private and local communities to communal property, and state ownership on the sale and purchase of land. In addition to limiting the rights, landowners get rent payments much lower than those that they would receive in a free land market. Landowners are unable to purchase land if they seek to expand production or sell their land if they don't need it. It especially concerns those who inherited land plots and show no interest in agricultural production," the expert said at the open discussion "Earth: Behind the Scenes of the Moratorium."
According to the expert, territorial communities also receive lower rent payments and taxes for community lands.
"If the land is underestimated, communities receive lower revenues and have no sufficient funds to support the social sector in rural areas," he said.
At the same time, the opening of the land market would have the most significant effect on the country's economic development.
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"The state also underreceives the results of economic development, which could be seen subjects to the removal of such restrictions. According to various estimates, lifting the moratorium and introducing a free land market by increasing productivity and attracting investments could additionally bring 1-1.5% of GDP per year. This would have a greater effect than the attraction of foreign loans from international organizations. We have our own resources to accelerate economic growth," he stressed.
Nizalov also noted the consequence of the ban on the land sale is the prevailing shadow market in agriculture.
"For the agricultural land market, the shadow market is a very common phenomenon that leads to seizures by raiders, also being a source of corruption. In fact, the shadow market is a risk factor for investors, slowing down investment in the agricultural sector," the expert said.
According to him, the moratorium and land reform concerns the rights to private property of about 7 million people who have received land in private ownership during privatization.