The State Property Fund of Ukraine has completed the process of corporatisation of the State Enterprise “Agrarian Investment Fund”, creating the State Land Bank LLC on its basis. This is the first state-owned operator of agricultural land. The newly created company is 100% owned by the state. This is a necessary final stage in the implementation of the Land Bank project before the official launch of the first online auctions for the lease of state land.

Vitaliy Koval, Chairman of the State Property Fund, commented: “We have come a long way in reforming the state land market. From regulatory changes and creation of the first operator of the Land Bank to re-registration of the first land pool and corporatisation of the enterprise. This is a unique experience for Ukraine, because for the first time a state-owned enterprise has become a LLC, the wholly owned subsidiary of the state.”

Yaroslav Yaroslavskyi, CEO of the State Land Bank LLC, emphasised the economic benefits:

“The mechanism of land use is changing dramatically. Instead of 1% of the regulatory monetary value for permanent use, the rental rate will now be 12%. This will increase budget revenues by at least 12 times.”

The establishment of the State Land Bank LLC is an important step in reforming the management of state land. The implementation of the Land Bank project aims to significantly improve the efficiency of the use of state land, increase revenues to the state budget, which finances the Ukrainian Defence Forces, and create transparent conditions for all market participants.