Ukraine, land market
Launch of the land market: the three fundamental models

 

There are many models on how the land market to be launched in Ukraine, but there are three fundamental models based on the actual content of the political debate. These options were expressed by Maxym Martynuk, First Deputy Minister of Agrarian Policy and Food of Ukraine.

Model 1. The lomg term extension of the moratorium (by 2022 and longer).
“I think this option is the worst, and I would be ready to accept its right to exist only on the condition that the state would take over the obligation to repurchase shares if someone wanted to sell them. According to a rough estimate, there are about 1 million of such people. Then you can close the issue of the moratorium and work in a particular system of coordinate. But the right of citizens to dispose their property should be realized, it is not even discussed, “- said Maxim Martyniuk.

Model 2. Run the land market in the form of sale of lease rights.
“Minagroprod developed a draft law “On the circulation of agricultural land” which includes unlocking the status quo by launching the right to sell the lease. In this scenario there will occur a slight cosmetic recovery in all segments of the land market, but there will be no global effect of the reform for the sector”- said the deputy minister.

Model 3. Phased introduction of the land market.
According to the deputy minister, in this model the first phase will be lasting for two years and put up the sale of the state land bank – up to 1 million hectares. In the second phase, the land market will be opened to individuals.

“The state gets a positive economic effect on the emergence of a new market, which we estimate will amount to $7.8 billion by the end of the first phase already. No need to hide that I am a strong supporter of this third model, because it is the most liberal of all possible in Ukraine”, – summarized Maxym Martyniuk.

latifundist.com

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