Zelensky initiates referendum to consider land sale to non-residents

Ukrainian President Zelensky published a video statement
on Nov. 11 announcing he will ask the Ukrainian public in a referendum on
whether to allow foreigners to buy farmland. The draft bill to create a land
market in Ukraine is likely to be voted on in the first reading this week. Its current draft foresees
that non-residents won’t be allowed to purchase farmland, while Ukrainian
companies owned by non-residents won’t be allowed to purchase such land until
end-2023. The draft contains an exception allowing local companies with foreign
ownership to purchase the land they are leasing as of October 2020, providing
they have been on the market for at least three years.

In his Nov. 11 statement, Zelensky said that after the
adoption of the draft bill (as it is written) in the first reading, its text
will be changed to not allow foreign-owned companies to buy farmland.

Foreigners will grant their right to purchase farmland
“only in the case that Ukrainian people agree on that in a referendum,” Zelensky
said. He also promised that parliament will soon adopt legislation that will
regulate such referenda.

More than 67% of Ukrainians believe that launching a
farmland market should be decided by a referendum, according to a poll
conducted by the Razumkov Center between Nov. 1 and 7 involving 2,015
respondents. About 68% of the respondents who said they will participate in
such a referendum said they are going to vote against the farmland market.

Alexander Paraschiy: Notably,
Zelensky has not said that he intends to ask Ukrainians on whether or not to
open the farmland market (as we can conclude from the published poll results,
they are very likely to vote against). Instead, he will pose the question of
whether or not to sell the land to foreigners, which is the main reason why
Ukrainians are against a free land market.

But without the participation of foreigners, the land
“reform” will have little positive effect on the economy. In this way, the
government will be burying one of the most promising reforms on its agenda.
Moreover, the biggest buyers of land will be the same oligarchs who are so
reviled by the public, which will fuel more speculation that Zelensky is acting
on their behalf.