The growers received the right to lease land for vineyards from 25 years. Previously, the minimal lease term was 7 years. Such amendments to the Land Code of Ukraine were approved by deputies today, who voted in the second reading for the bill № 2064 "On Amendments to Certain Legislative Acts of Ukraine on Stimulating the Development of Viticulture in Ukraine".

In addition, the document regulates the issue of expenses reimbursement incurred for the establishment or management of vineyards, as well as - damages in case of early termination of the right to use a land plot.

The need for such changes is due to negative trends in the development of viticulture in Ukraine. According to the explanatory note to the document, in recent years 21.2 thousand hectares of new plantations have been planted and 34.1 thousand hectares were uprooted, ie 1,5 hectare was withdrawn from circulation for each new hectare.

In 2016, excluding the territory of Crimea, there were only 44,000 hectares of vineyards in Ukraine, which is a critical limit after which the wine industry of the state can be destroyed. With such a quantity, it is impossible to provide enterprises with domestic raw materials.

Problems of viticulture development are also associated with high capital intensity: investments are over UAH100,000 per 1 hectare, as well as the long-term payback period. The duration of the vineyard is four years or more. The period of intensive operation of an industrial vineyard is 20-25 years.

The UAC welcomes the adoption of this draft bill #2064, as one that ensures the creation of appropriate economic and legal conditions for the development of viticulture in Ukraine.

Friday, 17 December 2021

 

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