UAIndex rose greatly yesterday, following the news regarding land market in Ukraine. On Tuesday, October 2, 2012 main governing body of Ukraine, Verkhovna Rada voted for the law, effectively allowing ownership of non-agricultural land for foreigners. Companies that are joint ventures, e.g. have foreign capital as a part of their equity as well as foreign government and non-government organizations may now legally purchase and own land in Ukraine. The second major decision made yesterday concerned veto on moratorium regarding land market. The decision has been made that veto will be effective only until 2013, as previously it was set to last until 2014. Therefore starting 2013, Ukrainian land market will become fully legalized and operational.

The news had their immediate effect on capitalization of public Ukrainian agro holdings, initiating increase in price per share for majority of them within UAIndex.

AgroInvest comment: legalization of the land market was one of the pressing issues lately for foreign investors, which were hesitant regarding investing in Ukrainian agricultural complex. We believe that this step will have its positive effect in the future, initiating another wave of growth for agro business in Ukraine.  

For more detail please refer to the UAIndex Daily (October 03 issue).

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UkrAgroConsult