The Cabinet of
Ministers of Ukraine on Monday hosted a working meeting, with Prime Minister
Volodymyr Groysman as a chair, in what ministers, MPs, representatives of line
committees of the Verkhovna Rada, heads of relevant associations and unions,
experts of agricultural market, representatives of farming enterprises tackled
the principles of a land reform.
considering a critical issue with all of you that has always been a platform
for speculating. We are talking about a prospect of introduction of the land
market and a market model itself. There are a lot of opinions, a number of
models... But it is crucial to ensure that the model finally offered if we
reach a consensus be basing on Ukrainian interests, the interests of Ukrainian
farmers and rural development", stressed Volodymyr Groysman at the
beginning of the meeting.
Minister highlighted that opening of the land market would spur economic
development, become an impetus for farming, creating of industrial
infrastructure in rural areas and in the medium term would allow the country to
change the economy type from based on raw materials to that based on added
At that the Prime
noted that here is necessary to ensure the process be gradual and to take into
account all possible risks. Therefore, according to the Head of Government, the
sale should be available only to individuals with Ukrainian citizenship and in
the amount not exceeding 200 hectares of land per person. "Herewith, at
this stage we strongly object to selling land to foreigners, to opening a land
market for legal entities", said Volodymyr Groysman. He noted that the
model to be offered should contain clear measures to prevent Ukrainian land
from just buying by those who are willing to use that to line their pockets:
"If to open up the market, then to do it to promote the creating of a
class of true farmers."
aired their arguments to support and to oppose different positions, but
generally agreed that the issue cannot be just limited to annulment or
preserving the moratorium on land sales. The problem is to determine which of
the existing land circulation models would be most appropriate for Ukraine, and
only aftermath to embark on discussion of how to introduce that.
Those present at
the meeting agreed on existing the shadow land market in the country. First
Deputy Prime Minister Stepan Kubiv
cited statistical data containing that in 2016 on non-competitive basis there
had been released for use 1.5 million hectares of agricultural land. At that,
the starting price of rent per hectare was only 940 hryvnias.
Simultaneously, on a competitive basis there had been transferred in use only
42 thousand hectares of land at a much higher price.
On the outcomes
of the meeting, the parties agreed to establish an interagency working group
comprising government officials, MPs, members of agricultural associations and
experts. In the near future the working group will present a concept of the
first phase of land reform being developed on solutions elaborated by the
Government and taking into account the opinions of everyone who engages in the
development of the agrarian sector of Ukraine. In addition, the Prime Minister
instructed to draft the Government resolution to prevent abuse on the land