The legalized corruption in the agrarian sector of Ukraine

The legalized corruption in the agrarian sector of Ukraine

The government and the President of Ukraine, together with parliament, having deprived of agroproducers of the preferential taxation, steal annually from farmers of Ukraine, about 6 billion 250 million US dollars. It is approximately equal in a hryvnia equivalent to 160 billion UAH. It is that main resource thanks to which the present, nonprofessional, not able to earn, kleptocratic Ukrainian power survives.

The most cynical is that the Prime minister V. Groysman knowing that they annually gather landowners within 160 billion UAH, in exchange pathosly promises direct grants to the village, 3, 6 billion UAH. Ponder what cynicism: steal 160 billion UAH, and grants give out to landowners of 3-6 billion UAH a year. And at the same time it is necessary to pay attention that grants go to friends of the President and the Prime minister. Last year nearly 2 billion UAH have been given direct grants to Mironovsky bakery product which owner is the President’s friend Yu. Kosyuk, about 1 billion UAH. The «Avangard» companies of O. Bakhmatyuk, and all others – real farmers, remained with one requisitions. This is also megacorruption in the agrarian sector.

Full nonprofessionalism of the President and the Government leads to the fact that many ordinary owners of land, for the purpose of leaving from payment of taxes, do visibility that take the earth for private use. And actually informally rent to small and average farmers. At the same time, the state receives less income tax from the rent on the earth, doesn’t receive the fixed agricultural tax on this earth and, respectively, doesn’t receive either a value added tax, or income tax, or a tax on dividends on those farmers who informally process such lands, and acreage which are in such shadow form of processing, in some areas reach 20-30%.And it is already corruption from ordinary people and farmers. Especially it is necessary to pay attention that when the farmland is processed kind of by owners independently, and in practice lease “blackly”, damage is caused not only to the budget of the state, but also the most Ukrainian earth since division of big fields into the small pieces belonging to such farmers leads to transformation of large-scale production in small-scale that complicates processing of the earth and increases prime cost and cost intensity of the most agricultural production. Besides, owners of land, using the earth “in black”, break her crop rotation, don’t use advanced technologies which I improve, but don’t worsen cadastral properties of the soil that eventually leads to loss of quality of soil and their fertility.

Lands which are in state ownership and also lands from category of not summoned shares; the lands intended for access roads to each allocated share are used by District State Administration as means for a personal profit since contracts for their rent are renewed annually and, respectively, depends on the head of the area to whom he will give for rent these lands (naturally to the one who will pay him informal “help” more). Besides, the rate of the rent can vary from 3 to 12% of the cadastral cost of the earth at the discretion of the head of District State Administration. It so-called small, but ubiquitous corruption in the agrarian sector.

These facts of corruption and nonprofessionalism of the Government in the sphere of tax, land, financial and economic regulation will lead to disorder of agrarian branch!

So if the government immediately doesn’t eliminate all above-mentioned and many other facts of corruption, nonprofessionalism and deception in relation to agroproducers, then dreams of Ukraine as to a world agrarian superpower will remain as pathetic memories of former agro-industrial rise in Ukraine, observed before coming to power of present speculators, embezzlers of public funds and laymans!


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