President of Ukraine Vladimir Zelensky signed law No. 552-IX on the introduction of a land market in the country, according to the website of the head of state. It states that the document is intended to ensure the "full realization" of citizens' private property rights to farmland and to "promote" the growth of investment in the agricultural sector.
“This is a historic moment for all Ukrainians and for me personally. Ukraine has been waiting for this law since independence. It was not an easy fight. But we knew that we were doing this for the Ukrainians, ”Zelensky said.
The law "On Amending Certain Legislative Acts of Ukraine Regarding the Conditions for the Turnover of Agricultural Land", approved by the president, will enter into force in stages.
“From July 1, 2021, ownership of land plots of agricultural purpose with an area of up to 100 hectares may be acquired exclusively by citizens of Ukraine. Starting January 1, 2024, legal entities owned by Ukrainians will also receive this opportunity. They will be able to buy up to 10 thousand hectares of land, ”the office of the President of Ukraine informs.
It is specified that state and communal plots will not fall under privatization. The most controversial issue regarding the right to purchase farmland by foreigners will be submitted to a referendum. At the same time, nothing is reported on the date and procedure for conducting a plebiscite. At the same time, the document stipulates that citizens of the “aggressor country,” by which the authors of the law mean Russia, will not be able to acquire land in any case.
"Very ill-conceived law"
Since 2001, Ukraine has had a moratorium on the sale of land. After coming to power, Zelensky announced the need to provide citizens with a “full right of ownership of their native land”, lifting the ban on transactions with farmland.
Speaking at the conference “Land as a factor in the development of the Ukrainian village” in September 2019, he noted that such a reform would put an end to the gray schemes and frauds that were widespread due to the ban on legal transactions.
“Instead of the mechanism (civilized relations. - RT ), a large-scale shadow market has appeared that is flourishing. This is a million hectares of land and tens of billions of hryvnia. And it is not a small farmer who benefits from this, not a simple rural resident, but the local so-called land princes, ”Zelensky said.
- Verkhovna Rada meeting with President
- © president.gov.ua
Also, the President of Ukraine has repeatedly tried to dispel fears that the most fertile areas of farmland may be under the control of foreigners. He promised that the Ukrainian owner would not be affected in his rights.
The bill on the establishment of a land market was introduced in the Verkhovna Rada in October last year. Zelensky hoped that the document could be adopted before December 1, but his initiative met stubborn resistance in parliament, despite the absolute majority that the presidential party “Servant of the People” has.
It was possible to pass the bill in the first reading only on November 13th. Over the next months, the document was constantly amended, and voting on it in the second reading was postponed ten times. Finally, the Verkhovna Rada approved the law on the introduction of the land market only on March 31.
On the eve of the final vote, speaking in parliament, Zelensky called on deputies to leave political battles aside and approve bills, without which Kiev would not be able to receive new loans from international financial institutions. According to the president, the IMF tranches will support the country's economy in the context of the coronavirus pandemic and the global economic crisis.
As the experts explained, at the end of last year, the International Monetary Fund set strict conditions for Ukraine to continue cooperation. In particular, the lender insists on the adoption by Kiev of the law on the land market and the “banking” bill, which increases the powers of the National Bank of the country (not yet approved by the Rada).
“The text of the land law that Zelensky signed does not really meet the requirements of the foundation. Therefore, it is now difficult to predict how relations between Kiev and the IMF will develop after Ukraine has formally fulfilled all the requirements, ”political analyst, economist Alexander Dudchak said in an interview with RT.
According to the expert, the reason for the claims of the International Monetary Fund to the law on the farmland market may be a continuing ban on transactions involving foreign individuals and legal entities. However, the analyst is sure that after the law comes into force, foreign "investors" will be able to buy Ukrainian farmland using, for example, shell organizations registered in Ukraine.
The RT source in the Batkivshchyna party also believes that enough legal loopholes will remain for foreigners to buy land after the law enters into force. So, a foreign company can easily register a legal entity with a nominal owner in Ukraine and thus become a market participant, the source said.
- Protests against land market law
- © Gleb Garanich / Reuters
In turn, the interlocutor of RT in "European Solidarity" drew attention to the fact that the bill signed by Zelensky does not take into account a lot of nuances and therefore is not able to protect the interests of Ukrainian farming. In particular, he emphasized that the land cadastre was still not compiled in the country.
“In Ukraine, a mess with documents on the land, chaos in government agencies. This can lead to the fact that those who work on the land lose it: their plots overnight will simply be transferred to other owners. Raiding flourishes in the agricultural business, and here we are talking about ordinary villagers. How can they protect themselves? The parliament adopted a very ill-conceived law, and Zelensky supported it, ”the source argues.
“Under the dictation of the IMF”
A RT source in the Ministry of Economic Development and Trade of Ukraine said that the opening of the land market will not lead to an increase in the investment attractiveness of the country. In his opinion, the only real reason for the adoption of this document is to keep Ukraine the opportunity to receive new loans from international financial institutions.
“Without this law, the IMF will refuse to provide new loans, and Ukraine will become bankrupt. Land along with some industrial enterprises are the most valuable assets in the country. Foreigners are interested in them, and the open land market is a kind of guarantee for the return of funds to creditors, ”said a source in the Ukrainian ministry.
In an interview with RT, Igor Shishkin, deputy chairman of the Interregional Fund for Presidential Programs, member of the National Strategy Council, suggested that in the future, the most valuable plots of land that are currently rented by agricultural holdings can be transferred to foreign control. According to him, the referendum, even if it takes place, will not be able to prevent this, since in its current form the law allows roundabout ways to begin this process.
“This law was actually adopted under the dictation of the IMF. It is likely that in a few years almost all the fertile lands will go to foreign owners, ”predicts Shishkin.
In turn, Alexander Dudchak recalled that most of Ukrainian society does not support the opening of the land market. According to a poll published on April 14 by the Kiev International Institute of Sociology (KIIS), 74% of respondents oppose the law on the sale of farmland. In this regard, the expert believes that following the results of April, the president’s rating will once again sag.
“Zelensky took advantage of a very convenient moment to push the unpopular land law through the Rada. There is a crisis and a pandemic, because of which no one will protest. An ideal chance, one might say. True, it is worthwhile to understand that in the coming years it is unlikely that Kiev will be able to sell land at an adequate price. What Zelensky did, I cannot describe otherwise than a crime against his own country, which was committed to please the IMF, ”Dudchak emphasized.