1. MINISTRY OF AGRARIAN POLICY
AND FOOD OF UKRAINE
Challenges Faced in Implementing Land Market Reform in Ukraine and Ways to Overcome Them
Maksym Martynyuk
First deputy minister of agrarian policy and food of Ukraine
Washington D.C.
March, 21, 2017

2. Launch of the land reform
(resolution of Verkhovna Rada on № 563-XII)
As of today
Communal property
100% 4%
50%
46%
State property
Private
property
State property
MINISTRY OF AGRARIAN POLICY
AND FOOD OF UKRAINE

3. Some facts about the turnover of agricultural land
5,3 mln.ha
Private (not restricted)
The area of agricultural land in Ukraine is
42.7 million. ha
10,4 mln.ha
State
(restricted)
Moratorium for sales is not affecting private land for subsistence farming
5,3 mln. hа
Potential opportunity to sale via land auctions – state land affected by Moratorium
10,4 mln. ha
Agricultural land for commercial farming transferred to private property during privatization – sales restricted by Moratorium
27 mln. ha
27 mln.ha
Private (restricted)

4. Moratorium on sales of agricultural land
Allowed
Restricted
Rent
Purchase and sale
Bequest
Change of designated use
Exchange
Transfer to charter capital of legal entities
Buyout for the public needs
Gifting
Provide to investors for production sharing agreements

5. Not implementing land turnover
Risks associated with implementation or not implementation of a turnover (sales) of agricultural land
Not implementing land turnover
Implementing land turnover
Incomplete land reform
Land speculation
Low rental prices and wellbeing of land owners
Excessive supply and devaluation of land during the initial phase of reform
Increase in absentee farming
Limited investments and reduced productivity
Excessive concentration and establishing of monopolies
Reduce capitalization of farms
Non-sustainable land use 
Social protests

6. Conceptual framework for the draft law on agricultural land turnover (land market)
Phased introduction of agricultural land market
Establishment of rules for agricultural land turnover
(sale, gift, exchange, inheritance);
Introduction of ways to prevent potential risks in transactions with land;
Improving the circulation of land rights

7. Phased introduction of agricultural land turnover
Sales of state agricultural land and communal land via auctions
Allowing transactions with inherited land
I STAGE
Introduction of land market for all categories of land
II STAGE

8. Regulations for agricultural land turnover
Establishing regulations and procedures for land turnover
(sale, inheritance, exchange – establishing maximum size of individual ownership, transparency of land transactions);
Add – transparency of land transactions and prices; land ombudsman
Introduction preferential right to purchase land for co-owners;
Sale of state land on transparent online e-auctions
Prohibition of entry to the ownership of land by foreign citizens, legal persons and stateless persons;

9. Establishment of rules for agricultural land turnover
RECIPIENTS
Citizens of Ukraine,
Central government
Local governments
SELLERS
Owners of agricultural land
Administrators of state and communal agricultural land
STATE REGULATOR
State institution for electronic auctions

10. Safeguards for transactions with land
Limiting the maximum size of land in individual ownership
(in private ownership – up to 200 hа; in lease – not more then 35 % of all agricultural land in the district / community )
Protection of tenants’ rights during the transition of ownership of land from one owner to another
Prohibition on change of usage purpose
(until 10 years (TBC) from the date of acquisition of the agricultural land)
Prevention of price undercutting in the sale of land
Restrictions on further allotment of land

11. Thank you for your attention! MINISTRY OF AGRARIAN POLICY
AND FOOD OF UKRAINE
Thank you for
your attention!
Washington D.C.
March, 21, 2017