The act on the land market – a key step towards the development of Ukrainian agriculture. OSW Commentary 2020-06-24.

Matuszak, Sławomir (2020) The act on the land market – a key step towards the development of Ukrainian agriculture. OSW Commentary 2020-06-24. UNSPECIFIED.

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Abstract

On 28 April, President Volodymyr Zelensky signed the Act on introducing an agricultural land market in Ukraine. The document envisages that the moratorium on the sale of agricultural land will be partially lifted on 1 July 2021 and entirely lifted from 2024. As a consequence, for the first time in the history of independent Ukraine, the free trade of agricultural land will be allowed. However, foreigners and even Ukrainian companies foreign shareholders will not have the right to buy land until a nation-wide referendum concerning this issue has been held. Regardless of certain reservations as to the wording of the act, the fact that it has been passed is a breakthrough moment for Ukraine. These reservations for example relate to the risk that antitrust provisions may be bypassed and also to the need to enact a number of laws and to implement acts regulating the practical operation of the land market. It should not be expected that major changes in the ownership structure of agricultural land will happen on a large scale by 2024. However, the act will have far-reaching consequences for Ukrainian agriculture in the mid- and long-term perspective. It will enable increased production and facilitate development in those sectors which are currently underinvested. It is also expected to improve the position of small and medium-sized agricultural companies[1] at the cost of big agricultural holdings and to boost the status of Ukraine as one of global leaders in the production of foodstuffs.

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