Ukrainian Phenomenon

Despite the economic crisis Ukraine occupied leading positions last year as an exporter of agricultural commodities. It is no wonder that the potential of agricultural development in the country is considered to be one of primary sources for its future economic growth. The pending question is to develop the proper favorable climate to attract either a foreign investor or to encourage local businesses to develop and modernize the sector. The main demotivating factor remains the same: sophisticated, non-transparent and restrictive land legislation.

No wonder that land reform appeared to be the main tool for investment in Ukrainian agriculture. Over the last couple of years Ukrainian agriculture has been widely considered as a sector for potential consolidations through M&A. The lack of lending provoked agrarians to consider IPO opportunities and several Ukrainian giants are already listed on European stock exchanges.

The agricultural companies definitely require stable and structured legal background that goes deep into land law, leasing issues, state aid and go-

vernment procurements. But it is important not to forget that as a WTO member Ukraine should review and change its regulation in compliance with international obligations and rules. By the way, the last statement can be used as an additional argument in favor of improving investment strategy.

Happy reading,
Olga Usenko