February 6 2002, 12:50 Interfax-Ukraine

Rent payments for shared land to increase. The rent projected may equal up to 2.5% of land plot value.

Presidential Administration Deputy Head, Mr. Pavlo Haidutskyi commented to the Feb. 5th briefing that in the near couple of years rental payments for agricultural land would increase up to 2.5% of the land plot value". He also said: "As time proceeds, we shall come to civilized standards, that will equal European ones".

Haidutskyi also stated that last year rental payments to land plot owners made up around UAH 2 bn, half of which were paid in cash and other half - in kind.

Answering the question, why land rent in Ukraine is not gross yield based, as it is based in Europe, he declared that lessees find ways to falsify the real yields and landowners have slim chances to monitor those yields.

According to Haidutskyi, 92% of arable land or 22 mn. ha is rented. "Such indicator is on the par with Japan and is Europe's highest".

Previously, in line with the Presidential Decree as of Dec. 9th, 1999, the minimum land rent was set up as 1% of the land plot value.