Part of the land is idle, and the budget is losing millions: the MP on the failure of the “Land Bank” project

In Ukraine, the state received only a third of the planned UAH 1 billion in revenues within the framework of the “Land Bank” project. The reasons lie both in the mistakes of the model according to which the State Land Bank was created, and in the non-transparent mechanisms of fund distribution. This was stated in an exclusive comment to UNN by People’s Deputy of the Verkhovna Rada of Ukraine Nina Yuzhanina.

DetailsAccording to the MP, Derzhzembank LLC leases 24,000 hectares of state agricultural land, for which it must pay at least 12% of its normative monetary value according to the law, while only 10,000 hectares of this area are subleased. In 2024, according to OpenBudget, UAH 63.93 million of rent was received by budgets of all levels for these lands. At the same time, according to Prozorro.Sales, Derzhzembank received a sublease income of UAH 334 million, which on average is ten times higher than the amount paid to the state as rent.

When these changes were adopted, we repeatedly raised the issue of land taxation. It was envisaged that the sub-lease should be at least 12%. At the same time, it was said during the discussion that they would actually lease it for 25% of the normative monetary value of the land. I kept asking: where will such a huge amount (difference – ed.) go, because it is not received by either the local budget, or the state budget, or anyone. And then it became obvious that this same amount, or even more, which should have gone to the state budget, would remain at the disposal of the LLC. That is, it is a kind of feeder

According to Yuzhanina, it was obvious even during the discussion of the launch of the model that it would have corrupt consequences. She noted that she proposed to leave the LLC only a part of the profits to ensure its operation, and not to allow the accumulation of significant income. However, at the legislative level, a model was created that can be used for non-transparent management of state lands. At the same time, the public was promised numerous advantages, but in practice everything went wrong.

Firstly, they (the State Land Bank – ed.) did not manage to lease all the land. This shows that they dreamed so much and, as always, promised, but they did not manage to place and lease everything at auctions. And the second question is that the payments to the budget are simply a big scam

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The MP noted that even from those few lands that were put up for auction, a part still remains unclaimed, as the lease terms are too onerous for most farmers.

Obviously, with a rent of more than 12%, not many farmers can afford to take such land for use. These are mainly large companies that have both the resources and a certain margin of safety, and they simply accumulate a land bank, they do not care whether it will be 5 kopecks or 25

Yuzhanina summed up that she sees the solution to the situation through the creation of real expert groups that would provide an independent assessment and predict the consequences of various decisions even at the stage of their adoption.

I think that we need not fake, but real expert groups that would assess and even make assumptions about different options when adopting certain norms. Why do some see the foundations of non-transparency and misuse of funds that could fill the budget during the war being laid? Well, it looks so cynical

Let us remind youThe Verkhovna Rada Committee demands a detailed analysis of state lands of the State Property Fund, transferred to sub-lease. The deputies suspect violations of the law during the transfer, in particular, the failure to take into account the type of land. In addition, the relevant committee demands a report on state lands that were transferred to the Fund, but were never sub-leased.

The Agrarian Committee of the Rada also called on the Cabinet of Ministers not to withdraw the state lands of the National Academy of Agrarian Sciences in favor of the State Property Fund. People’s deputies are convinced that this threatens the loss of domestic selection, scientific schools, jobs and food security. The committee members stressed that the land alienation of scientific institutions and state enterprises of the National Academy of Agrarian Sciences of Ukraine, which carry out effective economic activity, will result in a reduction in jobs, which will lead to social tension in the context of the war and undermine food and economic security of Ukraine.

In addition, the government should determine the optimal amount of land use for scientific institutions and enterprises of the National Academy of Agrarian Sciences of Ukraine, which will ensure the implementation of state programs and statutory tasks and the preservation of the branches of selection, seed production, horticulture, viticulture and microbiology.

At the same time, the State Property Fund of Ukraine should recall, review and amend the draft order of the Cabinet of Ministers regarding the withdrawal of state land plots, in particular, the National Academy of Agrarian Sciences.