Photo from UNIAN
The ECHR has recognized that a ban on the sale or any other way of alienating agricultural land in Ukraine violates the provisions of the Convention for the Protection of Human Rights and Fundamental Freedoms.
The Ministry of Economic Development and Trade of Ukraine has suggested that President Poroshenko veto a bill extending the farmland sale moratorium.
"On January 23, First Deputy Prime Minister of Ukraine Stepan Kubiv signed the Ministry of Economic Development's conclusion on Law of Ukraine No. 2666-VIII, which extends the ban on the alienation of agricultural land until January 1, 2020. In conclusion, the Ministry of Economic Development proposes that the President of Ukraine apply the veto," the press service of the ministry said.
The ministry noted that Article 41 of the Constitution of Ukraine stipulates that everyone has the right to own, use, and dispose of their property. The right to private property (including land) is inviolable. In addition, the European Court of Human Rights (ECHR) has recognized that an absolute ban on the sale or any other way of alienating agricultural land in Ukraine violates the provisions of the Convention for the Protection of Human Rights and Fundamental Freedoms.
At the same time, it is noted that, according to the World Bank estimates, the introduction of land market would create opportunities for Ukraine's GDP growth annually by 0.6–1.6 percentage points and would attract about $1.5 billion in additional investments per year, as well as would stimulate the development of agricultural and financial sectors and rural areas.
Read alsoUkraine Parliament extends moratorium on farmland sale until 2020
The lack of a land market worsens the welfare of 6.9 million Ukrainians owning land shares, the ministry added.
"In the conditions of weakened competition due to the lack of a land market, owners receive a fee for renting plots, which is five times lower: $50 per hectare instead of $250 per hectare – like in Bulgaria or Poland," the ministry said.
In addition, the absence of a land market prompts farmers to invest in the cultivation of predominantly annual crops – sunflower or rapeseed, which deplete the land most.
"Only from 2004 to 2012, Ukraine lost up to 43,000 hectares of perennial crops. According to the World Bank, by investing in annual crops instead of perennial ones, the farmer annually loses about $1,000 of value added per hectare," reads the report.
Moreover, according to estimates of the Center for Economic Strategy, local communities and the state budget annually lose about UAH 2.8 billion in tax revenues due to the lack of legal registration of contracts for the actual sale of land.
Thus, the ministry stressed, taking into account all the above-mentioned points, the Ministry of Economic Development had proposed the president of Ukraine to apply the veto regarding Law No. 2666-VIII on extending the moratorium on the sale of agricultural land until January 1, 2020.