Legal and institutional aspects of agricultural land markets in – 09.11.2007

    Discussions about land markets in general and agricultural land markets in particular have been going on and on in Ukraine since the private ownership on land was declared. The Land Code of 2001 setting up principal legal foundations of the land market has not had a chance to be used as a regulation thereof because of moratorium over sales of agricultural lands which was imposed upon transactions simultaneously with the adoption of the Code. The moratorium originally applied provisionally, till January 1, 2005, was prolonged till January 1, 20072 and then till
January 1, 2008. Results of the Parliamentary elections of 2002 and 2006 consistently showing Communists and Socialists losing popular support also pointed towards soon opening of fullyfunctioning land markets.3 Therefore, during the last year of the moratorium it is high time for making major political choices with respect of the organization of land markets, that need not only permission to operate but very strong legal and institutional infrastructure.
      Ukrainian experience of transition proves that any reform depending on human factors are highly
exposed to additional risks. Therefore, the establishment of a land market system as a sum of well-balanced institutions and adequate and stable legal regime is a task of utmost importance. Such system lies at heart of a successful land market which in turn is a corner stone of the national economy. The goal of this paper is to contribute to the discussion about the agricultural land market in Ukraine as a key issue of market transformation. We will perform an independent analysis of institutional and legal aspects related to the functioning of land markets and develop specific recommendations for immediate action.

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