REUTERS
Extending the moratorium repeatedly, the government has been delaying the launch of the land market, the official said.
Ukraine's Acting Minister of Agrarian Policy and Food Maksym Martyniuk says the agricultural land market in Ukraine may open no earlier than two years after a law on land turnover is passed, since potential buyers should get used to the rules and accumulate resources for the purchase of land.
"I am sure that at least two years should pass from the publication of the law [on agricultural land turnover] to the moment when it comes into force. Over these two years or more, all businesses should learn the rules and those who want to buy land should accumulate resources. Those who don't plan to purchase their land bank should strengthen their lease contracts. In short, they should get ready. Extending the moratorium repeatedly, we delay the launch of the land market, as we have to wait for two or three years from the adoption of the law on land turnover," Martyniuk said at a press conference in Kyiv on December 19.
Read alsoPM Groysman: No farmland sale in Ukraine until parliament adopts land turnover law
According to the official, it is necessary to remove the moratorium clause from the transitional provisions of the Land Code and adopt a law on the circulation of agricultural land, indicating restrictions and conditions on which this market will operate, as well as the date from which it will take effect.
"The land market cannot be introduced just tomorrow, because large land plots are leased. So, tenants' rights must be secured. With erroneous decisions, we will put at risk the potential of agricultural production in general, because if the land banks disperse, gross output will drop," he said.
According to Martyniuk, there are no political opportunities to make this decision now, as most landowners would like to dispose of it. At the same time, they oppose the lifting of the moratorium because of the fear of losing their property. In this situation, the government needs to think about increasing confidence in state institutions.
As UNIAN reported earlier, the moratorium on the purchase and sale of agricultural land in Ukraine had been in effect since 2001. The Verkhovna Rada extended it until 2019.
According to the land reform proposed by the government, only Ukrainian citizens could be eligible to purchase land after the moratorium expires. However, the maximum size of a plot per citizen shall not exceed 200 hectares.
At the same time, an ad hoc group under the Ministry of Agrarian Policy does not rule out the possibility of selling land plots to small farms – legal entities – subject to a number of restrictions.
The World Bank says Ukraine's economy will receive between US$0.7 billion and US$1.5 billion annually in case the moratorium on farmland sale is lifted.
At the same time, Ukrainian President Petro Poroshenko in September 2018 expressed doubt that the Verkhovna Rada would open the land market in the near future, especially given the fact that the presidential and parliament election campaigns had virtually begun.