The report shows the total amount of land controlled by oligarchs, corrupt individuals and large agribusinesses is over nine million hectares — exceeding 28% of Ukraine’s arable land (the rest is used by over eight million Ukrainian farmers).
The largest landholders are a mix of Ukrainian oligarchs and foreign interests — mostly European and North American as well as the sovereign fund of Saudi Arabia. A number of large US pension funds, foundations and university endowments are also invested in Ukrainian land through NCH Capital – a US-based private equity fund, which is the fifth largest landholder in the country.
President Zelenskyy put the land reform into law in 2020 against the will of the vast majority of the population who feared it would exacerbate corruption and reinforce control by powerful interests in the agricultural sector.
The Oakland Institute notes that, while large landholders are securing massive financing from Western financial institutions, Ukrainian farmers — essential for ensuring domestic food supply — receive virtually no support. With the land market in place, amid high economic stress and war, this difference of treatment will lead to more land consolidation by large agribusinesses.
All but one of the ten largest landholding firms are registered overseas, mainly in tax havens such as Cyprus or Luxembourg. The report identifies many prominent investors, including Vanguard Group, Kopernik Global Investors, BNP Asset Management Holding, Goldman Sachs-owned NN Investment Partners Holdings, and Norges Bank Investment Management, which manages Norway’s sovereign wealth fund.
Most of the agribusiness firms are substantially indebted to Western financial institutions, in particular the European Bank for Reconstruction and Development, the European Investment Bank, and the International Finance Corporation – the private sector arm of the World Bank.
Together, these institutions have been major lenders to Ukrainian agribusinesses, with close to US$1.7 billion lent to just six of Ukraine’s largest landholding firms in recent years. Other key lenders are a mix of mainly European and North American financial institutions, both public and private.
The report notes that this gives creditors financial stakes in the operation of the agribusinesses and confers significant leverage over them. Meanwhile, Ukrainian farmers have had to operate with limited amounts of land and financing, and many are now on the verge of poverty.