The State Property Fund (SPF) plans to hold the first auctions for the lease of state lands in July.
This is stated in the message of the SPF, the Ukrainian News agency reports.
"The State Property Fund announces the completion of preparations for the launch of the Land Bank project. The Cabinet of Ministers transferred 2,764 agricultural land plots with a total area of more than 104,000 hectares to the use of the SE Agrarian Investment Fund. The next step is the corporatization of the Agrarian Investment Fund and the launch of the first online rental auctions," the message says.
According to the report, after the transformation of the SE Agrarian Investment Fund into a limited liability company with a 100% state share, the newly created company will be able to perform the functions of a land auction operator.
"The Land Bank project will give farmers the opportunity to lease state land on a transparent and competitive basis through online auctions on the ProZorro.Sales platform. The auctions will start as early as July 2024. The winners of the auctions will have the opportunity to enter into lease contracts for state land for a period of up to 14 years for one-year plantations or up to 25 years for perennials. The starting price of the lots will be 12% of the normative monetary value of the land," the message states.
The SPF calculates that the opening of the state land rental market through the Land Bank at the first stage will bring an additional UAH 1 billion to the budget, and if all lands are involved, this amount may increase to more than UAH 8 billion.
As the Ukrainian News agency earlier reported, the State Property Fund estimates the total amount of state agricultural land at 806,000 hectares, of which 386,000 hectares are under the management of the SPF; 277,000 hectares - under the National Academy of Agrarian Sciences; 99,200 hectares - under the Ministry of Justice and more than 40,000 hectares - under other ministries.
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