Epic adoption in Ukraine resonance of the land reform came to an end. Point on Tuesday put President Vladimir Zelensky, signed final version of the bill. The opening of the land market was one of the main election promises of the Ukrainian leader and perhaps a key condition for granting the country the International monetary Fund (IMF) next tranche of financial aid. “B” understood, can we call the reform is successful or it is more of a political defeat of the President.After months of fighting with Ukrainian deputies Vladimir Zelensky still managed to lift the moratorium on the purchase and sale of agricultural land during the 20 years promised, but could not make his predecessors. On Tuesday, the President signed the final version of the bill. “Ukraine was waiting for the law from the time of independence. It was an uphill battle. But we know what we’re doing is for the Ukrainians”,— quotes the words of Vladimir Zelensky his press service.The fight was really fierce. So, the Verkhovna Rada adopted the law in late March, the same day his signing has tried to block (or at least delay) the opposition. The decision to cancel the decision are Glad has made expelled from the presidential party “servant of the people” Anton Polyakov and Deputy from nationalist party “Freedom” Oksana Savchuk. In the explanatory Memorandum they pointed out: the law “was violated several requirements of the Constitution of Ukraine”. However, to prevent Vladimir Zelensky they ultimately failed.Unhappy with the new reform remain today, although to the final reading of the bill is much diminished. If in November of last year against the law consolidated was made by the entire opposition, by the end of March, most of it went to the side of the President Zelensky. Among those who changed position, the party of ex-President Petro Poroshenko “European solidarity” and Pro-European party “Voice.” However, the victim of such a consensus was a series of fundamentally important provisions of the law.The greatest fear of opponents of reform was the issue of selling agricultural land to foreigners. Since September of last year, Ukrainian agrarians have gathered repeatedly in the square near Parliament, chanting “No to selling of land to foreigners!” and “Earth is not a commodity, but a gift from God!”. With similar slogans, the opposition has repeatedly blocked the Parliament rostrum. Another argument against reform is too high limit the concentration of land in hands of one owner: 0.5% of the total land Fund of the country, or 210 thousand hectares.First, the team of Vladimir Zelensky these arguments invariably retorted. “We are not talking about bad aliens or good— persuaded in September��e farmers, the then Minister of economic development, trade and agriculture of Ukraine Tymofiy mylovanov.— The thing is, who will pay higher salaries who will grow the crops needed for food security, and who will create more jobs. I want the village people worked today”. The idea that legalization of turnover of agricultural land will give a push to attract international investment in the agricultural sector, expressed in October, and the former head of the office of the President of Ukraine Andriy Bogdan.However, under pressure from the opposition against the ruling party and against the background of falling rating of the President from his words, “servants of the people” part had to be abandoned. According to the original bill, the Ukrainian market of land for foreign legal entities could open in 2024. In the final version of such a rule struck out, and the sale of land to non residents banned at all. To cancel the decision in this case will be on all-Ukrainian referendum, but regardless of the voting results of the sale of land to citizens “aggressor state”, that is, the Russians will be banned. In addition, the maximum threshold concentration of land in few hands has reduced by more than 20 times, up to 10 thousand hectares.The moratorium on sale of agricultural land was introduced in Ukraine in 2001 — two years before a similar moratorium was lifted in Russia. Before the reform, Ukraine remained one of six countries that had free land market, along with North Korea, Tajikistan, Congo, Venezuela and Cuba. Ukrainian economist Michael Kuhar, part of the interagency working group on the development of reforms, said “Kommersant” that all the countries of Central and Eastern Europe adopted similar laws in the 1990s. “For seven years after the opening of the market in 11 countries in Eastern and Central Europe, land prices rose about three times, and the yield increased by 42%,”— said the expert.While Michael Kuhar pointed out that only three countries in the region — Poland, Czech Republic and Bulgaria — not once opened up the market to non-residents.International partners took Kiev carried out the reform with enthusiasm. The opening of the land market, in particular, was one of the conditions of the IMF for Kyiv to receive the tranche of financial aid. “There has been good progress in discussions with the Ukrainian authorities on a new program of expanded financing (EFF), said the managing Director of the IMF Kristalina Georgieva at the end of March.— The adoption of legislation, improving Bank regulation, and land reform will allow to quickly move forward with finalizing the parameters of a new agreement with a wider access than previously anticipated.” April 17 in the program “Freedom of speech Savicand Schuster” Vladimir Zelensky said that Kiev hopes to receive from the IMF at least $8 billion. in addition, financial assistance will allocate the world Bank and the European Union.In the world Bank reform also reacted positively, but significant shortcomings of the law isn’t bypassed. As reported by the world Bank to Agency “Interfax-Ukraine” whether to allow foreigners to buy agricultural land in Ukraine or not, “should solve the Ukrainian leadership”. At the same time, the organization noted: the admission of foreigners to the market of agricultural land would increase competition, facilitate the introduction of new technologies and would accelerate economic growth. As previously predicted by economists at the world Bank, the opening of the land market in these conditions would lead to annual growth of Ukraine’s GDP by 1.5%.”We have the calculations, how would have to grow GDP at the opening of the land market,— said Michael Kuhar.— But they aren’t good, because we don’t know how much interest he’s going to fall”. However, the economist estimates the reform is positive: “for Many years Ukraine due to the lack of political will could not hold one of the simplest of economic reforms. My point is this: it is more profitable to introduce a law even in imperfect form, than to continue to live under socialism. It is difficult to talk about specific numbers, but we are talking about the annual economic growth around 3% in the next decade”.Marina Kovalenko
