Farmers in the frontline territories face serious financial difficulties due to the reluctance of banks to cooperate with enterprises in the "red zone". The only way for these companies to survive is the government's 5-7-9 lending program, but agricultural enterprises need additional direct subsidies.

Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council (UAC), spoke at a briefing organized by the ANTS – National Interests Advocacy Network at Ukrinform, where he described the difficult conditions in which farmers in the frontline areas work and legislative initiatives aimed at supporting them.

"The war has caused significant losses, and Russia has deliberately attacked agricultural complexes, realizing their importance for the economy and support of the Armed Forces. Due to low prices for agricultural products, in particular for grain, producers are forced to operate at a loss. The only chance for survival is the government's 5-7-9 lending program, which many farmers use. However, the situation is critical for companies in the frontline areas, as banks do not want to work with companies in the "red zone". There is a resolution of the Cabinet of Ministers that extends the program to these areas, but banks do not start lending to agricultural enterprises. At a critical moment, this helped them to enlist support and carry out their business activities," noted the UAC Deputy Chairman.

Farmers in the frontline areas are also constantly under fire. Despite the fact that land tax has been abolished for these areas, the issue of financing land use remains.

"It is important to allocate direct subsidies for these territories, i.e. funds that could compensate for land lease. The producer would be able to pay the rental rate for use to the owner of the land share and thus calculate his business activities. This is a priority for us, which we emphasize and ask to be supported," said Denys Marchuk.

He also focused on the important draft law 11180-1, which provides for the suspense of loan payments for farmers who have left the temporarily occupied regions.

"I would also like to draw attention to an important draft law 11180-1, which is currently in the Verkhovna Rada, but cannot pass the first reading so that producers can continue to operate. This draft law concerns the temporarily occupied territories and provides for the suspense of loan payments for those who have left their businesses there. Many of these farmers have relocated and cannot start operating in a new location because they are listed as debtors. The new funds that appear on their accounts will be taken away for debts. We emphasize the need to adopt this draft law as soon as possible, because people with vast experience have been left without jobs. If they had been able to get a loan, they would have started a new business instead of standing there with their hand out. We are losing personnel. But we are a united country, and for political and patriotic reasons, we need to pass the draft law 11180-1, which is now being considered by the Law Enforcement Committee," emphasized Denys Marchuk.

The UAC hopes that people’s deputies and the Presidential Office will find a consensus to support these Ukrainians.

Wednesday, 10 July 2024


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