There is already a legend about fertile Ukrainian black soil and never ending land ownership reform in this country.
The obvious competitive advantage in agriculture is performed much lower than 100%. The anticipated launch of agricultural land turnover has been dragging on for years. It results in limited development of financing, particularly mortgage lending. The absence of a land market is a constraint on develop- ment, but is favorable for many important stakeholders that have invested a lot in adjusting the current state of play.
Production is concentrated among large agrarian holdings. They account for a substantial share of the country’s export, have an extremely well-established lobby, significance for the economy and can even determine state policy.
Meanwhile, the big agrarian players widely use alternative mechanisms and seem to be quite optimistic about growth. We saw an expansion of their land banks and facilitation of sectoral M&A in the first half of 2017. The revival on the capital markets front is also mainly due to the agrarian sector.
This hot summer issue of the UJBL is focused on agrarian matters, while the cover story discussion at the Spenser & Kauffmann law firm brought us some practical insights.