The State Property Fund of Ukraine plans to nearly double the size of the Land Bank and increase budget revenues
The State Property Fund of Ukraine plans to significantly expand the “Land Bank” project and increase the amount of state-owned land transferred for sublease through open auctions.
This is expected to nearly double budget revenues from the lease of state-owned land.
According to him, over the two years the project has been underway, the market for subleasing state-owned land has been brought out of the shadows, and transparent pricing has been established.
“Sublease prices have already been established and are quite predictable. Sometimes they exceeded all expectations, but that’s how auctions work: if that amount was paid, the market itself showed that such a price is entirely justified,” he noted.
Currently, the Land Bank’s first pool includes approximately 90,000 hectares of state-owned land. By the end of the month, the State Property Fund of Ukraine plans to add another pool covering 30,000 hectares, which will increase the total volume to approximately 120,000 hectares.
“In other words, our land bank will expand to about 120,000 hectares. This means more land being traded on Prozorro and more money for the budget,” Natalukha explained.
At the same time, he acknowledged that the project’s implementation has faced resistance from the National Academy of Agrarian Sciences (NAAS), particularly through lawsuits and administrative obstruction.
“There have been both lawsuits and sabotage, but this is now an irreversible process, and we simply need to push it through,” emphasized the head of the Fund.
The State Property Fund is also considering the possibility of further developing the project through new financial instruments, specifically the issuance of land bonds backed by long-term sublease agreements.
At the same time, Natalukha stressed that the state does not plan to interfere in the formation of market rental rates, even amid discussions about high rates.
“We cannot and do not want to influence it. This is precisely an example of how the market itself creates both price and demand,” he noted.
This was announced by Dmytro Natalukha, head of the State Property Fund of Ukraine (SPFU).
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