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UAH 1.3 Billion to the State Budget — The Economic Effect of the "Land Bank"

The State Land Bank has secured UAH 1.3 billion in revenues for the state budget during its operation, including taxes, dividends, and other mandatory payments.

In total, during the first year of using state agricultural lands, farmers paid UAH 1.34 billion (including VAT). This is the result of the transparent and legal subleasing of 69,879 hectares of state lands through online auctions on Prozorro.Sale.

"The results of the 'Land Bank' prove that state land can work for both the budget and the development of farming. It is especially important that small and medium-sized agricultural producers actively use this mechanism — this is about developing market competition and supporting those who work the land," noted Oleksii Sobolev, Minister of Economy, Environment and Agriculture of Ukraine.

Since the project's implementation, 1,133 agreements have been concluded with agricultural enterprises and farming households in 19 regions of Ukraine. Out of the 74,538 hectares of land put up for auction, 93.4% have already been transferred into use, confirming the high demand for state land. At the same time, 81.5% of the plots (60,727 hectares) found users during the first or second auction.

"'Land Bank' is an example of how the state can effectively manage its resources. We haven't just opened access to land — we have created a transparent market lease mechanism that ensures stable budget revenues and builds business trust. State land has ceased to be a 'grey zone' and is starting to function as a fully-fledged economic resource," emphasized Dmytro Natalukha, Head of the State Property Fund of Ukraine.

Over a year and a half of bidding, 5,130 proposals were received from participants. High demand and competition contributed to the formation of the market value for state land use: today, the average sublease rate is UAH 19,200 per hectare annually (including VAT).

"It is important that this is not just a one-year result. The 'Land Bank' ensures stable revenues to the state budget. Already in the second year of using state lands, subtenants have paid UAH 583 million. Farmers continue to work on these lands, invest in them, and are interested in their responsible cultivation. This demonstrates their trust in the state, represented by the Land Bank, and confirms the sustainability of the mechanism in unstable conditions," noted Yaroslav Yaroslavskyi, CEO of LLC "State Land Bank".

As of April 2026, the highest revenues among regions were generated by:

  • Kharkiv region: UAH 261 million 

  • Kirovohrad region: UAH 239 million 

  • Mykolaiv region: UAH 200 million 

"Throughout its operation in the Prozorro.Sale system, the Land Bank has been a leader among 1,100 land lease auction organizers both in terms of revenue and the number of completed auctions. Notably, almost a third of all funds raised in lease auctions come specifically from the Land Bank. State lands are in demand, and on average, 4-5 participants attend Land Bank auctions," emphasized Serhii But, CEO of Prozorro.Sale.

It is also worth noting that 91.3% of the auction winners are representatives of small and medium-sized agribusinesses, which testifies to fair access to state land and trust in the mechanism from farmers and agricultural enterprises.

Over a year and a half of its activity, the "Land Bank" has proven the effectiveness of the established mechanism — state agricultural lands are emerging from the shadows, bringing steady revenues to the budget, and farmers are gaining honest and fair access to land plots. This is an example of how transparent tools can qualitatively change the approach to managing state land assets.