Land-Use Rights for Agricultural Land in Ukraine

Dmytro Fedchyshyn,Iryna Ignatenko,Liudmyla Leiba

doi:10.31207/ih.v9i1.215

Abstract

The article deals with the rights to agricultural land under the conditions of the moratorium on the alienation of agricultural land in Ukraine. Currently land lease is the most widespread land-use right in Ukraine. The purpose of the article is to investigate the features and prospects of the functioning of the land market in Ukraine and to increase investor interest in it. The dialectical method made it possible to consider the development of land-use rights in Ukraine, to formulate proposals for improving existing legislation. The method of comparative legal analysis made it possible to compare the system of relations of land ownership and lease in Ukraine and other countries of the world. Much attention has been paid to the abolition of the moratorium on the purchase of agricultural land in Ukraine, which will lead to a gradual increase in the share of entrepreneurial activity on owned land with an optimal ratio of land lease. Based on the features of agricultural land lease, the following positive points are highlighted: 1) the availability of long-term lease guarantees the tenant’s stability in land use and promotes better planning and investment attractiveness; 2) the ability to set a fixed size of land rent without taking into account the normative monetary valuation; 3) rents for agricultural land in Ukraine continue to be much lower than in other countries.

Highlights

Ukraine has an extremely rich land-resource potential
As Ukraine is approaching the abolition of the moratorium on the sale of agricultural land, large agrarian companies are rapidly increasing their land assets
According to the legislation there are no restrictions on the transfer of land plots of agricultural land for lease to foreigners and stateless persons

Summary

Introduction

Ukraine has an extremely rich land-resource potential. According to experts, up to 25% of the world’s black soil areas are located on the territory of Ukraine. The country has 27.8 million hectares of black soils (60% of the total land area), and the area of agricultural land with such soils is 25.3. Land-Use Rights for Agricultural Land in Ukraine million hectares (Tupalska, 2017). In this context, it should be noted that if Ukraine in Europe occupies 5.7% of the territory of the continent, its agricultural lands—almost 19% The agricultural sector is of key importance for Ukraine’s economy and attracts increasing policy attention and private-sector investments. Several factors add to the increasing attraction of capital to the agricultural sector, including foreign capital: (i) low cost of labor; (ii) low environmental standards; (iii) the possibilities of obtaining subsidies from the state budget for the development of the agrarian sector; (iv) the possibility of accumulation of large land masses through conclusion of agreements on land (leasing, emphyteusis, joint activity); and, (v) low rent for land

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