Land Auctions and Reform Reduced Corruption in the Land Market in Ukraine
The level of corruption in land relations within the agricultural sector in Ukraine has significantly decreased. According to the results of a nationwide survey, in 2024, only 13% of respondents reported personal experience with corrupt practices. In comparison, this figure was 24% in 2021.
This is reported by AgroReview
Stable Decline in Corruption Confirmed by Surveys
The research was initiated by the Info Sapiens research agency at the request of the Agricultural and Rural Development Program, funded by the U.S. government. The results demonstrate a consistent trend towards reducing corrupt practices in land issues.
Additionally, business surveys confirm a similar dynamic. In 2024, 27.9% of entrepreneurs encountered corruption in the construction and land relations sector, while in 2021, this figure was 32.5%. Although the difference is not drastic, it indicates a gradual improvement in the situation.
The land reform is cited as a decisive factor that has contributed to the sector’s recovery. At the same time, complete eradication of corruption has not occurred, but opportunities for abuse have decreased.
Key Changes That Impacted the Situation
The lifting of the moratorium on the alienation of land plots and the permission to change the purpose of land have been important steps towards transparency. The introduction of the land market and land auctions has significantly increased the openness of procedures.
The temporary suspension of the free transfer of land during the state of war has also helped reduce corruption risks: limiting access to the distribution of plots means fewer opportunities for abuse.
Digitization of state services in the State Land Cadastre has complicated the implementation of corrupt schemes. Electronic accounting makes hidden manipulations impossible, although it has not yet fully eliminated all loopholes.
Problem Areas Remain
Research indicates that the most abuses are noted by businesses during the transfer of land plots into ownership or use. This situation has been observed for the fourth consecutive year.
The most corrupt are identified as rural, settlement, and city councils, which have the authority to resolve land issues. According to experts, this is where corruption remains the most widespread.
Experts emphasize the need for further reform, particularly optimizing functions, procedures, enhancing automation and digitization, as well as maximizing transparency.
Reform and Its Consequences for the Land Market
The land reform started in 2021. At that time, the Minister of Agrarian Policy Roman Leshchenko noted it as a historic event, stating:
“The start of the land reform opened new opportunities for the development of agricultural production.”
According to his vision, the new rules were intended to stimulate various production formats that require significant investments, with the aim of building a developed Ukraine.
The real results of the reforms are already noticeable: over 150 enterprises and communities from 14 regions have changed the purpose of land from agricultural to industrial or energy, in order to begin construction of new enterprises and power plants.
Despite these positive shifts, the fight against corruption continues. In particular, former MP Yuriy Ivanushchenko was arrested in absentia on suspicion of illegally acquiring state land worth 160 million hryvnias. Such cases demonstrate that the issue of corruption remains relevant even at the highest levels.
The reduction of corruption in the land sector is a positive trend, but there is still a long way to go before the problem is fully overcome. As long as opportunities for abuse remain, there will be those who take advantage of them.