A number of people's deputies on the initiative of the Ukrainian Agri Council (UAC) today, December 4, registered in the Verkhovna Rada a bill number 9355-5 on extending the land moratorium until January 1, 2020.

"Despite the fact that in Ukraine there are constantly discussions about the possible introduction of the land market, we still have not presented a draft law on the circulation of agricultural land. This issue causes a lot of questionsand domestic farmers are extremely worried. In such circumstances, it is too early to talk about lifting the moratorium. It is very important that the VRU and a number of people's deputies who jointly acted as the initiators of the draft law to extend the moratorium by January 1, 2020, are taking care of this issue ", - said Denis Marchuk, the deputy chairman of the UAC.

The bill No. 9355-5 was registered by the People's Deputies: Alexander Bakumenko, Peter Yurchyshyn, Mykola Kucher, Valery Davydenko, Leonid Kozachenko, Andriy Kot, Mykola Lyushnyak, Sergei Labazyuk, Valentin Didich, Ivan Kirilenko, Anatoly Kuzmenko, Oleg Kulinich, and Vadim Ivchenko.

According to the explanatory note to the draft law "On Amendments to Section X "Transitional Provisions" of the Land Code of Ukraine on the extension of the prohibition on the alienation of agricultural land", political speculation that from January 1, 2019, the land market will be introduced, create tension in society and do not promote citizens' confidence in the reforms that are being implemented in the state. The abolition of the land moratorium in the conditions of a military state, an economic crisis and an imperfect judicial system without regulation at the legislative level of the procedure of land circulation poses a threat to both the national and food security of Ukraine.

In addition, before the introduction of agricultural land conversion, it is first necessary to work out and adopt a legislative framework for the formation of a developed network of farms and agricultural cooperatives. This will create jobs in rural areas, ensure the development of territorial communities and rural infrastructure.

It should also be taken into account that, as of today, commercial banks can not offer cheap commodities to agricultural producers. High lending rates are due to the fact that banks provide loans secured by mortgage, and given that the sale of agricultural land is subject to a ban, the subject of the pledge is a future harvest, which is associated with high risks.

"It is necessary to realize that the introduction of the land market can not be an end in itself, but should contribute to attracting investment in the agricultural sector of Ukraine, while at the same time making it impossible for the landlessness of Ukrainian citizens to be made. That is why it is necessary to extend the moratorium on sale or other means of alienation of agricultural land and to work out a detailed step-by-step procedure for the introduction of agricultural land into economic circulation ", - it is stated in the explanatory note to the bill.

At the same time, the authors of the bill say that the time for which the moratorium will be extended will allow regulating at the legislative level the procedure of land turnover and developing the necessary legal acts for the launch of the land market in Ukraine.

The deputies of Khmelnytsky and Chernivtsi Regional Council sent official appeals to the President, Prime Minister and Speaker of the Verkhovna Rada of Ukraine to extend the moratorium on the sale of agricultural land until January 1, 2025.

According to the appeals, during the moratorium period it is necessary to carry out a complex of measures for preparation of such an overwhelming step. The Coalition Agreement of November 27, 2014, contained 12 steps, but as of today only three are implemented. In Ukraine, inventory of land has not been conducted. The land cadastre is too slowly filled up. In 61 administrative regions of Ukraine, the area of registered by State Geo Cadastre land plots exceeds the actual area of these regions.

Moreover, according to the text of the appeal, raiding thrives in Ukraine and corrupt mechanisms for the transition of land rights to circumvent the moratorium, as there is no rule of law in the protection of property rights. The raider hunts are the result of an imperfect court system. There are no market mechanisms, which can help in shaping the price of land. There are no programs of preferential lending to the national Ukrainian farmers and, in particular, small farms. This puts the farmer in a position of impossibility to compete with agroholdings and corporations that have the opportunity to use the attracted foreign investments.

Tuesday, 4 December 2018

 

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