One Year of the Land Bank: Transparency and Challenges in Ukraine’s Land Market
The past year has marked a significant milestone for the State Land Bank of Ukraine in establishing a transparent and efficient market for agricultural land.
Created to promote openness and fair competition in leasing and selling state-owned lands, the bank has emerged as a key player in land auctions and registration processes.
During this period, 68,500 hectares of land have been put up for auction out of a total of 90,900 hectares allocated for use across 20 regions, indicating a proactive approach to revitalizing the land market and making it more accessible and transparent.Currently, the state-owned enterprise manages 1,962 land plots ranging from 1 to 4,000 hectares.
Additionally, another 3,600 hectares are at the stage of lease agreement registration, while decisions concerning 3,400 hectares are still being made by local authorities of the State Geocadastre.
However, delays and rejections have been encountered for some plots due to various reasons, illustrating ongoing administrative complexities.
Special attention is needed for lands situated in conflict zones or potentially contaminated areas — these territories are temporarily excluded from auction sales due to security concerns, amounting to 1,600 hectares within active combat zones and 6,600 hectares awaiting demining.Despite positive developments, challenges remain.
Litigation regarding the re-registration of lands persists, notably concerning 5,500 hectares currently entangled in disputes between different state bodies.
Resolving these legal issues is crucial to unlocking further potential in Ukraine’s land market, attracting investments, and fostering agricultural development.It is also worth recalling that, a year ago, Ukraine’s State Property Fund finalized the transformation of the State Agricultural Investment Fund into the LLC «State Land Bank», heralding the country’s first fully operational state agency dedicated to agricultural land management.
This transition marked a critical phase in launching the «Land Bank» project, paving the way for the digitalization of land auctions and the creation of online platforms for leasing and sale procedures.
Plans are underway to launch these digital platforms within the year, which will make land trading more transparent, accessible, and convenient for farmers and investors alike.