The moratorium on land sales should be lifted after July 1, 2021

12/ 12/ 2020

Land reform has been going on for almost the entire period of Ukraines independence, which is a record time. According to the Land Code of Ukraine, there is a moratorium on the purchase and sale of agricultural land, which does not allow to start the market circulation of land. The lack of an efficient market for agricultural land hinders the dynamics of agricultural development, land relations, and the national economy in general. On March 31, 2020, the Verkhovna Rada of Ukraine passed a law that initiated a new stage in the land market reform. Thus, on December 10, the European Business Association held an expert discussion on land reform in Ukraine with the participation of business and government officials, namely Taras Vysotsky, Deputy Minister of Economy, Trade, and Agriculture of Ukraine, and Roman Leshchenko, Head of the State Geocadastre. The representatives of state authorities assured that the land reform in Ukraine will be carried out. Both Roman Leshchenko and Taras Vysotsky unanimously stated this. Society is ready for the start of the land market with just a few individual political ambitions showing the resistance, but that is not enough to stop the reform. At the same time, it is difficult to predict how the next stages of the reform will proceed, but after July 1, 2021, when the moratorium on the sale of agricultural land expires and people start selling and buying land, it is expected that attitudes towards the land market will be more positive than what is currently shown in sociological polls. After the lifting of the moratorium and revealing the first results of the land market, it will be possible to continue the public dialogue and plan the next steps. Thus, we can expect shortly the adoption of the draft Law №2194 On Amendments to the Land Code of Ukraine and other legislation to improve the system of management and deregulation in the field of land relations, which is an important component of land reform. According to the Head of the State Geocadastre, it is planned that the Verkhovna Rada of Ukraine will vote on this draft law next week. In parallel, since the autumn of this year, the State Geocadastre will reorganize to form an internal structure following the draft law №2194 and the full transfer of agricultural land to the united territorial communities. This process is due to take place on 15 December and is an important part of land reform in the context of land decentralization and the transfer of more than 2 million hectares of agricultural land to local governments. Participants from small and medium-sized businesses also expressed their position. Thus, it was emphasized that land reform should take place and the market turnover of land should be launched. The opening of the land market will help liberalize agricultural business in the country and improve the quality of Ukrainian lands, as today we are witnessing strong soil degradation. We would like to thank Mr. Vysotsky and Mr. Leshchenko on the behalf of the entire business community for their unbridled optimism and ambition in land reform issues and wish them inspiration in the next stages of its implementation.

Land reform has been going on for almost the entire period of Ukraine’s independence, which is a record time. According to the Land Code of Ukraine, there is a moratorium on the purchase and sale of agricultural land, which does not allow to start the market circulation of land. The lack of an efficient market for agricultural land hinders the dynamics of agricultural development, land relations, and the national economy in general.

On March 31, 2020, the Verkhovna Rada of Ukraine passed a law that initiated a new stage in the land market reform. Thus, on December 10, the European Business Association held an expert discussion on land reform in Ukraine with the participation of business and government officials, namely Taras Vysotsky, Deputy Minister of Economy, Trade, and Agriculture of Ukraine, and Roman Leshchenko, Head of the State Geocadastre.

The representatives of state authorities assured that the land reform in Ukraine will be carried out. Both Roman Leshchenko and Taras Vysotsky unanimously stated this. Society is ready for the start of the land market with just a few individual political ambitions showing the resistance, but that is not enough to stop the reform. At the same time, it is difficult to predict how the next stages of the reform will proceed, but after July 1, 2021, when the moratorium on the sale of agricultural land expires and people start selling and buying land, it is expected that attitudes towards the land market will be more positive than what is currently shown in sociological polls. After the lifting of the moratorium and revealing the first results of the land market, it will be possible to continue the public dialogue and plan the next steps.

Thus, we can expect shortly the adoption of the draft Law №2194 “On Amendments to the Land Code of Ukraine and other legislation to improve the system of management and deregulation in the field of land relations”, which is an important component of land reform. According to the Head of the State Geocadastre, it is planned that the Verkhovna Rada of Ukraine will vote on this draft law next week.

In parallel, since the autumn of this year, the State Geocadastre will reorganize to form an internal structure following the draft law №2194 and the full transfer of agricultural land to the united territorial communities. This process is due to take place on 15 December and is an important part of land reform in the context of land decentralization and the transfer of more than 2 million hectares of agricultural land to local governments.

Participants from small and medium-sized businesses also expressed their position. Thus, it was emphasized that land reform should take place and the market turnover of land should be launched. The opening of the land market will help liberalize agricultural business in the country and improve the quality of Ukrainian lands, as today we are witnessing strong soil degradation.

We would like to thank Mr. Vysotsky and Mr. Leshchenko on the behalf of the entire business community for their unbridled optimism and ambition in land reform issues and wish them inspiration in the next stages of its implementation.