Ukraine will launch an electronic land auctions

On the technical upgrading will take a month or two.

In two months, the Ministry “will hold on” holding declared before the auction, and all subsequent will be prepared in electronic form

The Cabinet of Ministers at a meeting on 20 June amended the pilot project to launch an electronic land auction, allowing them to spend through the platform ProZorro.Sale.

This was announced by first Deputy Minister of economic development and trade Maksim Nefedov.

“We hope the announcement of the first auctions at the end of the summer. Will try to do it in the shortest possible time. Complications should not arise, although there is a need for full integration, create a user-friendly interface for the user, since this type of assets different from those with which we have worked,” said Nefedov during a press briefing on Monday.

He adding that the technical revision will require a month or two.

As noted by the first Deputy Minister of agrarian policy and food of Ukraine Maxim Martyniuk, the current auctions for the sale of lease rights to land plots appear complex and costly procedures, whereas the transfer to electronic format will solve this problem.

“Now the state more than 10 million hectares of land, while officially leased about a quarter of the total of 56 thousand contracts, and not all of them are at market prices. There are different reasons ranging from corruption to lack of an effective mechanism of rent of land,” he said.

Martyniuk said that over two months the Ministry “will hold on” holding declared before the auction, and all subsequent will be prepared in electronic version.

According to him, currently bringing shopping procedures in accordance with the requirements of the Land code, which regulates the procedure of land sales.

“With the launch of electronic trading, we rely on the existing infrastructure ProZorro, which has been successful, allowing us to quickly move away from the archaic format of bidding and optimize the cost of time and resources to run auctions online. We also get rid of the restrictions on the territorial principle, which involves the physical presence of the buyer at the place of the auction,” – said Martyniuk.

According to the Ministry of agrarian policy and industry in 2017 on land sales were sold 1,8 thousand lease rights to land plots with a total area of 42.5 hectares.

As a result, local budgets received UAH of 118.7 million. The average rental rate, which is formed on the bid over the last 5 years grew by more than 10 percentage points by year-end 2017 was 14.7%. For the first half of 2018, this figure increased to 18.8%. In January-June revenues to local budgets from the sale of lease rights to land was 77.3 million.

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