Last week, a bill № 3208 “On Progressive Land Relations” was registered at the Verkhovna Rada of Ukraine, under which, share owners are offered to grant the right to terminate land lease agreements at any time on their own initiative. That is, including contracts of emphyteutic. However, according to the bill, the right to buy agricultural land is granted only to citizens of Ukraine, who did not have a share before. In this case, the size of the land may not be greater than the maximum size of the unit when soldering.
This initiative is motivated by the need to correct the "discrimination" of the rights of unit-holders. However, this statement is frankly manipulative, and the adoption of such a bill poses a great threat to the country's economy.
In fact, bill № 3208 makes land lease agreements a fiction. After all, a contract that can be unilaterally terminated at any time is worthless. Moreover, the document states that the state not only ceases to ensure compliance with previously concluded treaties, but on the contrary - ensures their non-observance!
However, the implementation of treaties is the basis of the modern economy. And the implementation of such initiatives undermines this foundation, sending Ukraine to the Middle Ages. If the state does not enforce the contracts signed by the parties, no economy will be able to plan its activities, make investments and conduct business activities.
Industrial and large-scale production of agricultural products in Ukraine will become practically impossible. It will not be possible to conclude a lease or buy more than one land share. Creating an enterprise that processes more than belongs to one family, which is about 50 hectares, will be unrealistic. Production of cereals, oilseeds and industrial crops, keeping farms of more than 30 heads of cattle will be impossible.
The implementation of these initiatives will strike not only the enterprises that cultivate 95% of agricultural land, but also the shareholders themselves. It disorganizes the entire agricultural sector. It threatens the collapse of agriculture and all the infrastructure that is created to support it.
The Ukrainian Agri Council calls on the MPs-members of the Verkhovna Rada Committee on Agrarian and Land Policy not to support this bill and to recommend the Verkhovna Rada of Ukraine to reject it.
Wednesday, 18 March 2020