Since the beginning of the war, Ukrainian agricultural lands have been severely damaged by bombs, mines, and chemical contamination. According to Wageningen University & Research (WUR), large parts of the soil have become unusable for agricultural production. The damage is so extensive that large-scale restoration projects will be necessary once the war ends.
According to estimates presented by the Wageningen researchers, the costs for cleaning up the polluted farmland will run into tens of billions of euros. This involves not only the physical removal of mines and explosives but also chemical cleansing to restore food safety.
More than a year ago, Ukraine opened the market for agricultural land previously owned by the state and large cooperatives. Recent Ukrainian data reveals that only three percent of the available agricultural land has actually been sold. Many Ukrainian farmers remain cautious, partly due to the uncertain situation in the country.
Promotion
The Ukrainian government is trying to accelerate the sales process by simplifying the rules around the sale and distribution of agricultural land. Among other measures, plots are being subdivided and state lands are made available for long-term lease. Nevertheless, the number of transactions remains limited, likely also because many farmers have used their financial reserves (if they had any) for other strictly necessary matters.
At the same time, Ukraine is conducting intensive negotiations with the European Union about future membership, whether in the short or longer term. In that case, the agricultural sector must meet extensive EU criteria regarding sustainability, animal welfare, and food safety. The European Commission recently stated that Ukraine is making remarkably rapid progress in several parts of the accession process.
Additionally, urgent talks are underway about the trade relations between Ukraine and the EU. The current temporary trade relaxations expire in June. If no new agreements are made, the old trade quotas and tariffs from before 2022 will apply again, which were much less favorable for Ukraine.
The European Commission has promised to offer better trade conditions than those before the war. A new agreement would grant Ukrainian agricultural products greater access to the European market, provided they meet the standards that the EU requires for imported products. Discussions on this are still ongoing.