Rada to consider farmland market bill today

Ukraine’s parliament (the Verkhovna Rada) is scheduled
to vote on Feb. 6 for the final draft establishing the conditions of the
nation’s first farmland market, said on Feb. 5 David Arakhamia, the head of The
People’s Servant parliamentary faction. He clarified that parliament will start
reviewing the bill on Thursday, and will likely finish Friday morning, calling
the process “land night.” The bill’s first reading was approved by
parliament on Nov. 13, and its text has changed radically
since then. In additon, the lawmakers having submitted over 4,000 amendments
which should be reviewed by Rada.

The current draft significantly restricts the ability
to purchase farmland after the initial conditions sparked public outcry. In
particular, the maximum size of a land bank that can be acquired by a single
entity (individual or company) is restricted to 10,000 ha (vs. about 200,000 ha
in the first reading). This draft forbids purchases of any farmland by
nonresidents, or companies in which nonresidents have a stake (in the first
draft, foreigners were allowed to buy farmland that they were leasing as of
specific date). The restrictions on foreigners can only be lifted by a national
referendum.

The latest draft also allows for the foreclosure of
farmland by banks if it was provided as collateral (with neither size nor
citizenship limits applying to the banks). However, these banks must sell the
land within two years. The latest draft also grants lessees the right of first denial
of a purchase offer on their lot.

Alexander Paraschiy: We estimate
at 50/50 the likelihood of parliament having enough votes to approve the
farmland market legislation. Not only will this highly unpopular measure lack
the support of the majority of factions, but the pro-presidential People’s
Servant party might not even muster enough votes from its 248 MPs (with 226
votes needed).

With so many amendments submitted for review, it’s
possible the final draft will change radically during the course of today’s
session. The final version could even contain provisions that enable bypassing
the limits set in the drafts. However, its key measures –  banning
foreigners from the market and restricting the amount of land held by a single
entity – are likely to remain.