An essential step has been taken for the launch of the Land Bank and effective management of state lands

Due to the amendments to the Budget Code adopted by the Verkhovna Rada of Ukraine, the distribution of revenues from the lease of state agricultural land between the state and local budgets has been regulated. The new rules concern the distribution of 12% of the normative monetary value of land, which will be the starting price at auctions for the transfer of land for lease.

Now 90% of these revenues will go to the state budget, and 10% to local budgets.

This distribution will ensure a significant increase in state budget revenues due to the opening of a transparent land rental market after the launch of the Land Bank, initiated by the Fund's team. At the same time, local budgets will keep their income at the current level, and in the future, due to the removal of lease relations from the shadows, their income will increase.

The Chairman of the State Property Fund of Ukraine, Vitaliy Koval, noted: "The adoption of amendments to the Budget Code is another important step for the launch of the Land Bank. After all, the goal is to increase internal reserves through additional revenues to the state budget, which will be directed to support the Defense Forces of Ukraine."

For reference.The Land Bank is a large-scale project aimed at effective management of state agricultural lands. Lands will be leased through competitive online auctions on the Prozorro.Sale platform. In the first pool, 109,000 hectares are planned, of which 90,500 hectares are managed by the State Property Fund, and 19,500 hectares are owned by the enterprises of the Ministry of Justice.