The State Property Fund has completed the corporatization of the "Agrarian Investment Fund," forming the new "State Land Bank," according to the SPF's press service. This is the first state operator of agricultural lands in Ukraine, fully owned by the state. The newly created company is a crucial final step in the "Land Bank" project before the official launch of the first online auctions for leasing state lands.
"We have made significant progress in reforming the state land market. From regulatory changes to the creation of the first 'Land Bank' operator and the corporatization of the enterprise. This is a unique experience for Ukraine, as it is the first time a state enterprise has been transformed into a limited liability company, with the state as its sole owner," said SPF Chairman Vitaliy Koval.
"The mechanism for using land plots is fundamentally changing. Instead of 1% of the normative monetary valuation for permanent use, the rental rate will now be 12%. This will increase budget revenues by at least 12 times," added Yaroslav Yaroslavsky, head of LLC "State Land Bank."
In 2023, the Cabinet of Ministers transferred 25 state enterprises, previously managed by the National Academy of Agrarian Sciences, to the State Property Fund. About 800 thousand hectares of land remain in state ownership, with nearly half of them currently managed by the State Property Fund.
