Restricting foreigners from buying land in Ukraine brings schemes to the market — opinion
The ban on purchasing Ukrainian agricultural land by foreigners and companies with a foreign capital share is a form of uncertainty. This was stated by Giovanni Salvetti, Managing Director at Rothschild, Head of CIS, in the interview with Latifundist.com.
"International creditors do not want to bear additional risks, and the value of shares, and thus the company, is reduced or undervalued," he said.
According to him, there is yet another disadvantage: the ban on the purchase of land by foreign companies is a way to the emergence of various schemes in the market.
"One can't stop the capital from moving. It will look for "windows", "backdoors" and so on within the existing law. This is unlikely to add transparency to the structure of the land market," explained Giovanni Salvetti.
According to Giovanni Salvetti, the land is an entry ticket for Ukraine to the club for attracting major global investments.
Previously reported that the Agrarian Committee of the Verkhovna Rada of Ukraine (Parliament) published an updated draft law No. 2178-10 and an explanatory note of 3652 pages.