UKRAINE ADOPTED NEW LAND LAW DISCRIMINATING COMPANIES WITH FOREIGN OWNERS
Agromino (the “Company”) informs that yesterday the President of Ukraine signed new land law which will lead to discrimination of foreign investors in Ukrainian agriculture. The new land law shall come into force in July 2021.
Non-Ukrainian nationals and Ukrainian companies with non-Ukrainian owners (such as the Company) will be excluded from the future land market and will thus not be allowed to purchase agricultural land. The exclusion in respect of foreigners will remain in force until the citizens of Ukraine will vote in a national referendum in favour of further opening of the market for non-Ukrainian investors. At the moment it remains unknown when such referendum may take place. Based on public polls it is highly unlikely that the Ukrainian citizens will support further opening of the market.
Agromino currently operates a land bank of 55 thousand hectares of agricultural land located in Ukraine. Most of the land bank is operated based on long term lease agreements. In the long term, the new land law will highly likely lead to decrease of operated land bank and, in general, inferior position of the companies with foreign owners (such as the Company) in the competition with Ukrainian farmers.
Within the last few months Agromino, along with other international investors in Ukrainian agricultural sector, expressed its concerns over the impact of contemplated land law. Attempts to reflect interests of existing non-Ukrainian investors and to allow them to participate in the future land market were not successful.
Mr. Petr Toman, CEO of Agromino A/S
Tel: +38 044 586 4445, e-mail: firstname.lastname@example.org
We are farmers and agribusiness managers, with operations in Ukraine, Russia and Estonia. Agromino A/S shares are traded on the main market of Nasdaq Stockholm.
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The information was submitted for publication, through the agency of the contact person set out above, at 09:00 CEST on 29 April 2020.