LAND REFORM – A CORPORATE PERSPECTIVE

of Economic Development, Trade and Agriculture. The agricultural bounty is considerable. Ukraine is the number one producer of sunflower seeds that are used in sunflower oil, as well as a top European source of corn and wheat.

Opening the land market will not be enough to change perceptions of investors, who are keeping a watchful eye for other signals. In a country where corrupt politicians have traditionally been a large deterrent to investment, reforming the judicial system is of paramount importance. To truly exploit the potential of an open land market, Ukraine’s new government is working to prove “responsible behavior that was lacking in previous administrations,” says Mylovanov. “We need to demonstrate that we are a reliable partner that protects property rights, conditions and rules,” he adds. “Agricultural land is the country’s most valuable asset” MORGAN WILLIAMS PRESIDENT OF THE US-UKRAINE BUSINESS COUNCIL

Ukraine is correct in underscoring a makeover in its behavior. At the moment, American investors are most preoccupied by the lack of legal defense for their interests. “The number one challenge is rule of law,” says Andy Hunder, President of the American Chamber of Commerce in Ukraine, an organization that represents over 600 US and international In the view of Olena Vorona, CFO and COO of Agrotrade Group, a vertically integrated producer of grain and oilseeds, the land market reform will finally enable “long-term land leases based on market conditions.” After an 18-year moratorium on the sale of agricultural land, Ukraine’s government now plans to abolish it once and for all to pave the way for private investment. investors. While full judicial reforms are not yet completed, Hunder has noticed that Ukraine is making a conscientious effort to “transition to a transparent, fair and just legal system, where businesses value justice over special privileges.”

Judicial reforms are considered a main ingredient to Ukraine’s proposed private-public partnership program. The country has an estimated 3,500 state-owned companies that President Zelensky is taking aim at. The transport and energy sectors look set to receive the most amount of privatization. Yet, Ukraine’s courts and agricultural land will have to become modernized before investors start rushing in to buy stakes in Ukraine’s hitherto state assets.

“The land reform will allow for long-term land leases based on market conditions” OLENA VORONA CFO AND COO OF AGROTRADE GROUP