Major reforms in ukrainian agricultural sector in 2016

Investing in Ukraine: Major Reforms in Ukraine Agricultural Sector in 2016

Recent years have witnessed a number of #essential #reforms and #nationwide #discussions about the #future of #agriculture in Ukraine. The sector is a need of quick and profound reforms some of which Ukrainian government attempted to introduce throughout 2016.

Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities

Below are some of the most important takeaways resulting from the 2016 reforms in the agricultural sector.

Moratorium on agricultural land sales stays in full effect

Despite the many objections voiced by landowners and economists, the Ukrainian parliament, Verkhovna Rada, supported the legislation banning agricultural land sales in Ukraine until Jan 1, 2018.

While not allowing the landowners to dispose of their land, the legislation aims at eliminating the black market land deals that could possibly occur due to the lack of proper legislative regulation. Now, the plan is to create such legislation until Jan 1, 2018 and launch a fully operating and properly regulated land market by then.

Government dotations to be raised

According to Taras Kutovyi, the Minister of Agrarian Policy and Food of Ukraine, the government approved annual financing for the agricultural industry at 1% of its GDP. This level of financing is now to be for the next five years. In 2016, the agricultural sector received UAH 5,5 billion.

These funds are expected to help farmers create new jobs, enter the European markets, stay competitive and revive the countryside.

EU’s agricultural quotas for Ukraine to be increased

The European Union has recently agreed to increase quotas for Ukrainian agricultural producers. In particular, they will receive additional quotas for corn, wheat, honey, cereals and processed tomatoes. The total exports volume is estimated at USD 200 million.

The proposal, put forward by the European Commission, will remain in effect for 3 years. It should also be approved by the European Parliament and the EU member states.

Improved legislation for the organic agriculture

Ukrainian Ministry of Agrarian Policy and Food expects the parliament to approve the newly created legislation aimed at fostering the development of organic agriculture in Ukraine. In particular, the new law will ensure additional measures are taken so that consumers can be confident in products labeled as organic.

This will also help fight unfair competition and ensure transparent rules for producing and distributing organic products.

The government also intends to continue implementing the reforms from 2016 into the new year. Diversification of markets, consistent improvement of existing legislation and establishing an effective state monitoring over the national bioresources are next on the list.

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