The total amount of land controlled by oligarchs, corrupt individuals, and large
agribusinesses is thus over nine million hectares, exceeding 28 percent of the country’s arable land. The
rest is used by over eight million Ukrainian farmers.
Part 2 - How is the takeover of agricultural land happening?
Whereas at least 4.3 million hectares are already controlled by agribusinesses in Ukraine, recent
dynamics are leading to a further takeover of agricultural land in the country. A law passed in March
2020 lifted the country’s 19-year moratorium on sales of agricultural land, allowing such transactions
since July 2021.
Rejected by a vast majority of Ukrainians who massively protested against it in 2019 and 2020, the law was a measure imposed by Western financial institutions that have become major lenders to the country since 2014. It was passed at a time when mandatory COVID-19 stay-at-home orders were in place across the country, effectively quelling further protests or demonstrations. The objective of this law is to ensure the exit of “less productive farmers” from agriculture and promote further concentration of land.
Thousands of transactions have been recorded in the first year of application. Some of the largest agribusinesses are in the process of using it to expand the land under their control. This process of concentration is also driven by massive financing that large agribusinesses are receiving from Western financial institutions whereas Ukrainian farmers, though they are key to ensuring Ukraine’s domestic food supply, receive virtually no support. With the land market in place, this difference of treatment in the context of high economic stress and war will likely lead to more land consolidation by large agribusinesses.
The above points to Ukraine’s agricultural land being a major stake in the war. The report details instances where land changed hands because of the war, including surfaces reportedly seized by Russian agribusinesses to be farmed in the Eastern part of the country.
Source:
Comments
Post a Comment