Ukraine is an agricultural paradise. It possesses a staggering one-third of the world’s ultra-fertile black soil (“chernozem”) and enjoys a reputation as one of the most farming-friendly countries on the planet. Even the Ukrainian flag, with its depiction of golden crops under a blue sky, is an ode to this ancient agrarian heritage. Meanwhile, Ukraine’s strategic location at the crossroads of Eurasia offers relatively easy access to the markets of Europe, the Middle East, Africa and Asia. Despite this immense agribusiness potential, Ukraine remains one of only six countries globally (along with Cuba, Venezuela, Tajikistan, Congo and North Korea), where owners of agricultural land are not entitled to dispose of it.
Ukraine’s moratorium on farmland sales has been in place for 16 years. From a purely legal standpoint, this moratorium contradicts the very essence of ownership rights. As many as seven million citizens of Ukraine, who own 28 million hectares of farmland plots, do not currently have the right to dispose of their property as they see fit. The moratorium also undermines Ukraine’s position in well-respected world rankings that consider private property protection as one of the foundations of economic freedom. For example, according to the Heritage Foundation’s 2018 Index of Economic Freedom, Ukraine received just 41 out of 100 points for property rights protection.
Nevertheless, the chances of lifting the moratorium before the end of 2018 are alarmingly low. One of the key factors preventing land sale reform is the lack of awareness among both state authorities and landowners about the potential benefits of a free farmland market. Negative public perceptions of land sale reform are also a major obstacle to progress on the issue. These perception problems are largely the result of aggressive media campaigns by populist political parties who promote the moratorium by playing on Ukrainian society’s timeless agrarian traditions and deep ties to the land. The populist potency of the issue means support for land reform is politically dangerous and unlikely to be forthcoming until fast-approaching presidential and parliamentary elections are out of the way in late 2019.
