World Bank, EU ready to provide technical support for Ukraine to launch farmland reform

The World Bank and the European Union stand ready to provide technical support and other resources for Ukraine to successfully implement farmland reform.

This was stated by Klaus Deininger, Lead Economist in the Sustainability and Infrastructure Team of the Development Research Group at the World Bank, according to Ukraine's Ministry for Development of Economy, Trade and Agriculture.

Read alsoUkraine estimates economic effect from farmland market launch at US$85 bln

In his words, Ukraine has all the prerequisites for the introduction of a transparent farmland market, which will increase the efficiency of the use of land resources, provide a basis for the development of agriculture, rural areas and the local population.

Ukraine's Deputy Minister for Development of Economy, Trade and Agriculture Taras Vysotskyi, in turn, said that the introduction of the farmland market and the provision of all the necessary tools for its successful operation remains a priority for the government of Ukraine for 2021.

"All the priorities of the Ukrainian government regarding the further implementation of the land reform remain operative in 2021, because in six months the farmland market will be launched. It is important for us to provide all the necessary prerequisites for the successful launch of the farmland market and its further operation," he said.

In particular, these are the development and implementation of farmland legislation, the introduction of land deregulation, the transfer of land management powers to local communities, the introduction of a system of e-auctions, land monitoring.

A roadmap for further joint work within the Land Reform Steering Committee is expected to be finalized in early February.

Farmland reform in Ukraine: Facts in brief

• On April 28, 2020, President Volodymyr Zelensky enacted the law on amendments to certain legislative acts of Ukraine on agricultural land to launch the farmland market in Ukraine from July 1, 2021.
• The law provides for a gradual land reform: only citizens of Ukraine will be able to buy agricultural land with a limit of 100 hectares per individual as of July 1, 2021. At the second stage, as of January 1, 2024, land concentration will increase to 10,000 hectares, and legal entities will also be allowed to acquire farmland.
• In June 2020, President Zelensky said Ukraine would lift farmland purchase restrictions only after Ukrainian farmers were given access to low-interest loans for that purpose.
• On October 15, 2020, Zelensky signed a decree on the transfer of agricultural land from state to municipal ownership.
• On the same day, State Geocadastre head Roman Leshchenko said that about 750,000 hectares of land would remain in state ownership after the transfer of more than 2 million hectares of agricultural land to municipal ownership under the presidential decree.
• On November 9, 2020, the Cabinet of Ministers proposed new methods be introduced to evaluate farmland.
• On November 10, 2020, Deputy Minister for Development of Economy, Trade and Agriculture Taras Vysotskyi announced that the government would allocate UAH 500 million (US$17.8 million) in the 2021 budget for the first stage of the farmland reform.
• On November 11, 2020, the Cabinet of Ministers improved control over the concentration of agricultural land in the ownership of one person.
• On November 17, 2020, the Cabinet of Ministers passed a resolution on the transfer of farmland to territorial communities.