The Ukrainian land bank has been subleased a largest land plot to a private company.

The largest plot controlled by the State Land Bank, spanning 3,969 hectares in the Ustinivska community of the Kirovohrad region, has been subleased for 14 years with an annual payment of ₴78.6M ($1.9M), including VAT. The auction winner has already finalized a contract with the State Land Bank and paid the entire sum.

“Subleasing state lands fosters economic growth, boosts job creation, and enhances tax revenue, with the auction value of the plot increasing nearly fivefold to ₴19.803 ($475) per hectare, inclusive of VAT,” stated Minister of Economy Yulia Svyrydenko.

Additionally, Yaroslav Yaroslavsky, head of the State Land Bank, remarked that this plot had been underutilized for a significant period, and its sublease will promote effective cultivation of the fertile land.

Notably, the initial half of the Land Bank’s auctions have contributed almost ₴600M to Ukraine’s budget. For instance, last week 18 online auctions were conducted for subleases of state lands, generating ₴5.2M (+₴1M VAT). The total land area auctioned amounted to 381.8 hectares.