It is now the third year since the land reform began. Contrary to the myth that all land would be sold off immediately, only 1% of all agricultural land has been transferred during this period, reports ‘ProAgro Group’, citing the press service of the Ministry of Agrarian Policy.

According to Deputy Minister Denys Bashlyk, during the first stage of the reform, restrictions on the amount of land that an individual can purchase – up to 100 hectares per person – proved effective. At the same time, the market has changed during this period, and land prices are rising.

“In three regions: Ivano-Frankivsk, Lviv and Ternopil, the average price per hectare has risen. In Ivano-Frankivsk region it has reached almost $2,000 per hectare, in Lviv region – $1,450, and in Ternopil region – $1,400. This indicates that, despite the restrictions, there is demand for land, and prices are not standing still. Everything is working, and the myths have not held true,” noted the Deputy Minister.

Denys Bashlyk outlined what the second stage of the reform, due to begin in January 2024, will entail. In particular, the market will be opened up to legal entities. However, he emphasised that only Ukrainians may purchase land. No foreigners. According to him, the decision to allow foreigners into the land market, in accordance with the law, will be taken by a nationwide referendum.

“With the start of the second phase, a group of legal entities will emerge that wish to acquire land to develop long-term investment projects. This will drive up prices. That is why people are currently very cautious about land transactions, as they understand that it is a fixed asset that will generate income for them,” emphasised Denis Bashlyk.