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What To Expect From the Land Market In Ukraine?

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Talks about land reform do not stop. The IMF calls it one of the main prerequisites for the next tranches for Kyiv. According to the Memorandum on Cooperation with the Fund, the land reform should be legally finalized by the end of May, and the land market should start working from January 1, 2018.

However, discussions about the basic principles on which the land market in Ukraine will operate go on for many a year. They have intensified again.

Dmytro Boyarchuk, CASE Ukraine Center for Social and Economic Research`s CEO, says in a commentary to BBC Ukraine that de facto land market is already working.

The expert believes the main objective of land reform is to legitimize land relations. Now, according to the expert, they are determined by the shadow market, which works despite a formal moratorium on sale.

In his opinion, the shortcomings of current land relations should also teach that any restrictions ‘simply mean additional costs of shadow schemes’ which will sooner or later be invented.

Despite all the risks, according to the expert, after excluding legal entities from the field of land buyers ‘we will find ourselves in a semi-legal market situation again’.

June 3, 2017