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25 Leading Associations Urge President to Protect Farmers Who Lost Farms Due to War

Twenty-five specialized agricultural associations have appealed to President Volodymyr Zelenskyy, asking him to promptly sign a law that protects the interests of farmers and agricultural companies who have lost their farms due to the war.

"The enemy's occupation of Ukrainian territories, the destruction of agricultural enterprises' assets, the loss of workers – this is far from an exhaustive list of problems that farmers have faced since February 24, 2022," the appeal states.

The law "On Amendments to the 'Final and Transitional Provisions' Section of the Civil Code of Ukraine Regarding Features of Lending and Financial Leasing During Martial Law" was adopted by the Verkhovna Rada on March 27. However, it has not yet been signed by the President. In a situation where many farmers, saving their families, abandoned farms that found themselves under occupation or in active combat zones, every day of delay brings them closer to financial catastrophe.

"Such farmers, leaving occupation or moving to safe regions, have lost their enterprises and the ability to conduct economic activities, as a result of which they cannot timely fulfill their obligations to creditor banks for previously obtained loans," the signatories emphasize.

Instead of support, many have received lawsuits from banks attempting to collect debts in full, regardless of the war, ruined farms, and lost assets.

"Unfortunately, we have numerous cases of commercial banks fully applying forced debt collection mechanisms to such farmers. Often, lawsuits also extend to individual guarantors, leading to them losing their only housing or transport," the agricultural community warns.

The law provides for three critically important provisions:

  • A ban on accruing penalties (interest, fines, forfeits) for the period of martial law and for one year after its termination;
  • Deferment of principal loan payments while the war and its consequences last;
  • A moratorium on forced collection of collateralized property if the assets are located in temporarily occupied territories or in a combat zone.

"Forced debt collection under such circumstances not only disregards objective circumstances but also threatens the complete destruction of agricultural business in these regions," farmers emphasize.

According to the authors of the appeal, the problem has been discussed since 2022: at conferences, in specialized working groups, and in dialogue with the Government and deputies. Finally, parliament adopted a decision. Now, it's up to the President.

"Ukrainian farmers and agro-food companies continue to hold the economic and food front amidst the war and for the fourth consecutive year await legislative settlement of the loan repayment issue. They count on your support every day," the document stresses.

Farmers urge the President to take a decisive step – to give a chance for recovery to those who sustain Ukrainian villages and ensure food security even in the most difficult times.

Press Service of the Association of Milk Producers


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