Land market: the perspectives for Ukraine and Ukrainians

Abstract

Since 2001, the time when Land code of Ukraine was adopted and the campaign of land privatization was held, the restriction for sale of agricultural lands is in force. In 2019 new Ukrainian government announced the end of restriction and the opening of land market in 2020.

 The author examines the present state of land relations in Ukraine to make the conclusion whether Ukraine is ready for land market. Ukraine has one of the best agricultural lands in the world. They occupy 70 % of the territory of the country. The percentage of arable lands is the highest in the world – more than    50 %. Land reform in Ukraine was started in 1991 and is still not finished. As a result of reform peasants became owners of most of agricultural lands. So land market is a crucial theme for the country.

Despite of the fact, that citizens are owners of land parcels, most of them are removed from agriculture. Tenants are those, who really have the profit. Big profit. Owners get low rent and know nothing about the real cost of their own land, the crops, that raise constantly and the money they bring. A big part of tenants are foreign companies. Such foreign investments, unfortunately, bring nothing for the economy of Ukraine.

The government does not protect national agriculture. In opposite, it ruines it. Before privatization the owners of agricultural land were was companies based on cooperation. Due to administrative pressure they were destroyed by privatization of land. New owners instantly became the victims of tenants. Now the reform of self government is held in Ukraine. It provides the amalgamation of villages and transmission of powers from the state to local authorities. This will result in loss of land resources by local people.

The climate change is crucial theme for agriculture. Population on the planet grows but agricultural lands constantly disappear. In this context Ukrainian lands have strategic value in global scale. It may seem incredibly, but issues of climate change and land market are never examined together in Ukraine. But they are examined in such way by countries, that have not enough land resources but enough money to buy them. This brings us to the other important issue – the food security. Even now 90 % of crop is exported abroad. Internal market is not provided sufficiently by domestic agriculture. Ukraine is number one in the world in production of sunflower-seed oil, but we still have to import it! What does it mean? It means that crops are controlled only by private persons in private interests. Public interests are not provided. The perspective of acquisition of land by foreign countries in such situation is threatening for the country.

The rule of law in Ukraine is not working. The court system is weak, corrupted and politically influenced. The right of property has not enough respect in society. Business works illegally. The latter is used by the organized crime, especially in agricultural business. The organized crime in this sphere is stronger than ever.

As a result of conducted research, the author makes conclusion, that Ukraine presently is not ready for land market.

Keywords: land, climate, market, investments, corruption, food security