A moratorium on the sale of agricultural lands costs Ukraine’s economics millions of dollars, as Satu Kahkonen, the World Bank Country Director for Belarus, Moldova, and Ukraine, in the interview for Bloomberg, as Epravda reports.
“The unconditional advantages of Ukraine’s economics are not implemented due to the moratorium. The agriculture sector developed in the Soviet Union, being a leader in the sunflower export, cannot be developed properly and stop corruption,” she said.
Kahkonen stated that 6,9 million landowners – every 6th Ukrainian – have the lowest salary in Europe for leasing their lands when the quality of agricultural soil in Ukraine is one of the best in the world.
She also supposed that the authority avoids the cancellation of the moratorium due to the concerns to lose voters before the elections in 2019. The general view on this question has not been settled in Ukraine. Besides, several civil servants and businessmen organized lobby as the moratorium allows them to create opaque schemes of using agricultural lands.
“Politicians consider the idea of a moratorium on “farmers’ security” as a tool to get electoral dividends,” said Maksym Martyniuk, Deputy Minister of Agricultural Policy.
According to the predictions of the World Bank, the prices on land sale in Ukraine can rise to $3-3,5 thousand per hectare, while now the price is $1-1,5 thousand.
As it was reported earlier, the Verkhovna Rada prolonged the moratorium on lands sale for a year by the voting on December 7, 2017.