MHP claims ready for land market opening

MHP agro-industrial holding supports the introduction of the land market in Ukraine. The company notes that farmland is not its core business, NV writes.

"Once the land market opens, we are ready to buy or rent land, depending on the price and feasibility of the investment. If it is promising — we will buy it, if not — then let our partners buy, and we will be happy to cooperate with them," says Irina Vannikova, MHP press officer.

It is important, she notes, that land share owners have the full right to dispose of their property. Obviously, Ukraine is a legal and democratic state, so the interests of people should be a priority in land legislation.

"Speculation with farmland generates fortunes of millions. See who is the loudest when it comes to selling land. These are exactly the people who have already lured thousands of hectares of land from the villagers," believes Irina Vannikova.

Learn more: Ukraine's Land Market Bill Adopted: Key Provisions

The Ministry for Economic Development, Trade and Agriculture of Ukraine states that the shadow turnover of land resulting from the moratorium reaches UAH 10 bln. And, according to Iryna Vannikova, this is the minimum estimation as it is impossible to calculate the market value of these "schemes".

"Well, of course, no taxes are paid. Schemes do not provide for any taxes. The land is leased for 49 years under contracts that are extremely difficult to terminate or change. These contracts, as a rule, are exceptionally unfavourable for land owners," stresses Irina Vannikova.

She specifies that during the last 2 years only, 460 thou. ha of land have been leased out under such conditions.

As a reminder, President of Ukraine Volodymyr Zelenskyy signed the Law No. 552-IX "On Amendments to Certain Legislative Acts of Ukraine Regarding the Turnover of Agricultural Land" on April 28, 2020. The Speaker of the Verkhovna Rada (Parliament) Dmytro Razumkov signed the document on April 13.

The Verkhovna Rada of Ukraine adopted on March 31, 2020, the Draft Law No. 2178-10 "On Amendments to Certain Legislative Acts of Ukraine Regarding the Turnover of Agricultural Land" in the second reading. The relevant decision was supported by 259 MPs.