Farmers from the temporarily occupied territories (TOT) and zones of hostilities continue to bear the financial burden of loans taken out before the full-scale invasion. They are unable to work but are forced to pay off their debts. In these circumstances, the law No. 12148 adopted by the Verkhovna Rada, which provides for the suspending of loan accruals and payments, is a critical decision.

This situation is clearly illustrated by the results of a survey of 57 agricultural enterprises conducted by the Smart Country Advisory Center at the request of the Ukrainian Agri Council in April 2025. Farmers from Zaporizhzhia, Kherson, Donetsk, Luhansk, Kharkiv, Dnipro, and Sumy regions took part in the survey.

The total loan portfolio of the surveyed companies amounted to UAH 494.5 million, of which UAH 362.6 million was in the TOT and UAH 131.9 million was in the 'red zone'. 38% of the respondents have fully repaid their loans, while the rest are still under financial pressure from loans taken out before the full-scale invasion.

The amount of debts to banks that farmers are unable to service due to the loss of access to land, machinery and infrastructure continues to grow.

Law No. 12148 provides for the suspension of interest, fines and penalties, as well as the postponement of obligations on the principal of the loan until the end of the war and for another year afterwards. This gives farmers from the TOT and the war zone the opportunity to keep their farms and recover after liberation. Farmers expect President of Ukraine Volodymyr Zelenskyy to sign the document as soon as possible. This is necessary in order not to lose the agricultural sector in the east and south of the country.

The survey results show that banks are practically not lending to the frontline areas anymore, including those farmers who have fully fulfilled their obligations under previous loans. Only 7% of the surveyed companies were able to get a new loan or are in the process of obtaining one. Another 18% of farmers applied to banks and were rejected, mainly because they were located in the “red” zone. And the most telling thing is that 74% of respondents have not applied to banks for new loans at all, as they do not expect to be approved.