The first 16 online auctions for the sublease of state agricultural land under the Land Bank project, which took place on 1 October in the Prozorro.Sale system, brought more than UAH 35 million to the state budget. This is reported by Komersant ukrainskyi
with reference to the Ministry of Economy.
The first lots included 16 land plots in Vinnytsia region with a total area of 1075 hectares. The auction was attended by 94 bidders, including both farms and agricultural holdings registered in the Vinnytsia region.
Intense competition increased the cost of subleasing state land by more than eight times compared to the starting prices, which demonstrates the high interest of farmers. The average sublease price was UAH 33 thousand per hectare.
The most expensive lot was a 262-hectare plot in the Kalynivka city territorial community, which was sold for UAH 8.5 million excluding VAT, while the starting price was UAH 1.1 million. There were 44 bidders, and the price increased 7.5 times during the auction. The winner was a local agricultural company.
The second most expensive lot was a 170-hectare plot of land in the Kalynivka urban community. There were 45 bidders for it, and the price increased 7.3 times – from the initial UAH 755,000 to the final UAH 5.5 million.
The biggest competition was for a 38-hectareplot of land in the Kalynivka urban community. Fifty-one bidders competed for the right to use it, and the sublease price increased from UAH 170 thousand to UAH 1.2 million.
“High competition at the first auctions of the Land Bank demonstrates the successful start of the project. On average, 31 bidders took part in the auctions, and the price increased 8 times due to the auctions. Tenants finally got the opportunity to invest under transparent and clear rules on competitive market conditions,” said Yulia Svyrydenko, First Vice Prime Minister of Ukraine, Minister of Economy of Ukraine.
A total of 10 participants were selected as winners. Within 20 business days, they will have to sign a sublease agreement and then pay the proposed asset value and additional VAT within the next 5 business days – a total of UAH 7 million.
Thus, the total economic effect of the first 16 auctions of the Land Bank may exceed UAH 42.5 million. After payment, the winners will receive the right to use the plots for 14 years.
“Previously, these state-owned lands were used illegally for years. But with the launch of the Land Bank, we are gradually bringing them out of the shadows and making it possible to use them on a fair basis. Now, the state will not only stop suffering losses, but will also start receiving real income from these land plots,” said Yaroslav Yaroslavsky, CEO of the State Land Bank.
This week, four more auctions for sublease of state agricultural land will be held in Vinnytsia region.
The Land Bank project aims to create transparent and open conditions for subleasing state land through online auctions on the Prozorro.Sale platform. By the end of the year, it is planned to hold about 1,900 auctions for more than 100,000 hectares of land in 20 regions of the country.
Transparent auctions enable farmers to participate in fair and competitive bidding, which helps attract investment in the agricultural sector. The state budget is expected to receive about UAH 1 billion in additional revenues this year.