Ministry of Economy: Nearly UAH 600 million in revenue – results of six months of Land Bank trading

Over the six months of online auctions under the Land Bank initiative, more than 20,000 hectares of state-owned land have been transferred for lawful use under transparent and competitive conditions. A total of UAH 584.9 million, including VAT, has been paid for the right to use state agricultural land within the framework of the project.

“After six months of the Land Bank operation, we can see that transparent online auctions are truly transforming the approach to managing state-owned land. On average, seven participants compete for each lot, resulting in the starting price for land subleases increasing eightfold. This is an example of a new standard in managing state assets, where land contributes to the economy and creates opportunities for agricultural businesses across the country,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy.

Since 1 October 2024, 506 online sublease auctions for state agricultural land, covering a total area of 35,235 hectares across 17 regions of Ukraine, have been conducted through the Prozorro.Sale system. Of these, 271 auctions resulted in sublease agreements for land plots totalling 20,521 hectares.

The highest competition was observed in Vinnytsia region, with an average of 22 participants per lot, followed by Poltava and Cherkasy regions, each averaging 14 participants per lot.

Based on concluded agreements, the highest average price per hectare was recorded in Ivano-Frankivsk region at UAH 47,500. The lowest average price was in Zakarpattia region at UAH 3,496 per hectare.

Over the six months of trading, 3,463 bids were submitted, predominantly from small and medium-sized farming enterprises and agricultural businesses. This demonstrates that the mechanism for subleasing state land is effective, with demand for these opportunities remaining consistently high.

“Some 69.1% of the Land Bank auction winners are small and medium-sized agribusinesses. This reflects strong interest in state agricultural land and the opportunities this project provides. We see that various market participants trust this mechanism, offer competitive prices, and are ready to deliver results. Among our sublessees are those who have signed over 20 sublease agreements and are already actively cultivating these lands. This is fundamentally about trust, stability, and the desire to efficiently utilise every hectare. Land should work for the state – and it is doing so,” said Yaroslav Yaroslavskyi, CEO of the State Land Bank LLC.

Among the regions, Ivano-Frankivsk region leads with the highest average price per hectare at UAH 47,500, including VAT. Meanwhile, the highest price per hectare over the six-month period was for a 191-hectare plot in Cherkasy region, reaching UAH 56,000, including VAT.

“In just the first six months, the Land Bank has become the leader in funds raised among all organisers of land auctions conducted on Prozorro.Sale since autumn 2021. Today, we see that state agricultural land is in demand, with sublease prices rising nearly sevenfold after auctions. In contrast, the average increase in land auction prices is twofold. High competition and rising prices indicate that through online auctions, the state is effectively managing its land, retaining ownership while generating revenue for budgets,” said Sergiy Boote, CEO of Prozorro.Sale.

As of 3 April, 394 land plots for sublease, covering nearly 12,000 hectares, are available in the Prozorro.Sale electronic system. Among the currently available plots is the largest lot from the first pool of the Land Bank – a 3,969-hectare plot in Kirovohrad region. Its starting price is UAH 13.7 million, with a repeat auction scheduled for 22 April. The smallest plot, covering 0.03 hectares, is located in Zakarpattia. Since the project’s inception, 966 auctions have been announced across 18 regions of Ukraine for land totalling 42,223 hectares.

The six-month results of the Land Bank demonstrate the successful implementation of a transparent mechanism for leasing state agricultural land. Through the project, state agricultural land is gradually emerging from the shadows and becoming available on competitive terms to all interested in its efficient cultivation. Open sublease auctions have already become a vital tool for developing the agricultural sector and ensuring stable budget revenues.

The Land Bank is currently continuing efforts to scale up the project and is preparing to launch a second pool of land. Available land plots can be tracked on the project’s official website.