World Bank urges Ukraine to withdraw moratorium on land sale
The World Bank has prepared a thematic note on land reform in Ukraine, calling for the ban on land trade to be removed.
“The moratorium on the sale of agricultural land, in conjunction with the inadequate transparency in the area of land ownership rights and deals involving land, results in low productivity, a low level of investment in the agricultural sector, and low income from letting out land for millions of Ukrainians. Land reform is extremely important for improving the living standards of Ukrainians, because it is supposed to facilitate the acceleration of economic growth, increase the population’s income, including income from letting out land for minor landowners,” the note states.
The World Bank notes that Ukraine possesses the largest areas of arable land in Europe, but the added value for one hectare is only $413, whereas in neighboring Poland it is $1142, and more than $2400 in France. Rental rates are thus several times lower than in other European countries. In Ukraine it is roughly $37 per hectare, whereas in France (which has the second most arable land) it is $198.
The world bank points out that the government has said that land reform is its priority, and hopes that the authorities will take the planned steps without delay, and remove the moratorium in 2018.
During the annual message to the Verkhovna Rada, President Petro Poroshenko promised not to force out the land reform. The reform will also be necessary for a sixth IMF tranche (the fifth has not yet been received).