Economy

Liberalization of the land market will provide $20 billion to restore the agricultural sector.

Liberalization of the agricultural land market in Ukraine and increased transparency could lead to a significant increase in state budget revenues. In particular, these measures are expected to generate up to $35 billion in additional revenues, which could offset the $20 billion deficit in agricultural financing and partially cover the $500 billion cost of the country’s overall reconstruction.

The liberalization of the agricultural land market is expected to bring economic benefits of 1-2.7% of gross domestic product (GDP) annually over the next three years. This opening of the market will also allow foreigners, including citizens and companies from the European Union, to purchase land for agricultural use in Ukraine, which should provide additional benefits.

According to the data, about 71% of Ukraine’s territory is agricultural land, of which 33 million hectares are arable land. However, as a result of the invasion, about 20% of agricultural land was occupied and a third of the sector was destroyed, resulting in losses of $80 billion in agriculture.

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