American colonization in Ukraine: they bought up a third of the agricultural land

In less than a year, one third of the Ukrainian agricultural land became American property, it was revealed recently. Most of them are owned by giant multinationals, such as the globally hated Monsanto. The shockingly fast – we can safely call it that – “colonialization” sheds an interesting light on the attitude of the Americans to the Russian-Ukrainian war. How does the United States benefit from Ukrainian farmland owned by American companies in the context of the Russian-Ukrainian war? According to Petra Halkó, the analyst of Századvég, it is absolutely clear even at the current stage of the conflict that the war generates earthquake-like processes on the world economic scene; and as a result of the prolongation of the war, a serious livelihood and food crisis began to unfold. In such a situation, the value of Ukrainian agricultural lands will naturally increase even more, and even become crucial from the point of view of global food supply – however, the benefit is reaped by the American ownership circle, he added.

Almost 55 percent of the total area of ​​Ukraine is arable land, land with a rich fertile layer that represents enormous agricultural value. However, for a long time it was only possible to rent them, as the Ukrainian government adopted a moratorium on the sale and purchase of land back in 2001, which was then extended ten more times.

However, July 1, 2021 brought about a change, when under pressure from the International Monetary Fund (IMF), the previous moratorium was lifted, and thus the possibility of buying and selling land became available again, and the Ukrainian government made it possible for economic actors outside of Ukraine to buy agricultural land as well. In the year that has passed since then, three international consortia with American capital have become the largest buyers in Ukraine. According to the Australian National Review, these three multinationals bought a total of 17 million hectares of farmland, which represents 28 percent of the arable land, or almost a third. The three giants are Cargill, DuPont and Monsanto – Magyar Nemzet previously wrote.

We asked Petra Halkó, the analyst of Századvég, about the processes in Ukraine.

Why did Ukraine change its previous land law in July 2021? Why was this important to the Ukrainian leadership? To what extent could this have happened under American pressure?

Previously, the IMF made the adoption of the law a condition for a new loan package for Ukraine. In fact, however, the law on the lifting of the moratorium on the sale of agricultural land is a fundamental element of the liberalization plan supported by Western international institutions, such as the IMF. The Ukrainian leadership believed, perhaps even believed, that the law would allow the attraction of foreign investments, which would boost the exploitation of the economic potential of Ukrainian agricultural lands. However, nothing happened other than an increase in the level of corruption and the sale of domestic wealth into foreign hands: ergo, the full service of the global economic elite. Today, it is also clear from the list of the main buyers that the economic elite came to Ukraine directly from the United States.

Why did American investors appear in significant numbers after July 2021? Why was Zelensky’s leadership not disturbed by this very powerful American advance?

The region between the Baltic and Black Seas is a valuable stage for the geopolitical games of the great powers in many ways. At the same time, the games are not only taking place on the military front, but also on the economic front. That is why it is a mistake to assume that the age of colonialism is over, only the XXI. In the 20th century, it is just different; and Ukraine is not the only example of this in the world. Ukraine currently has a political leadership at the head of the country, which in recent years has shown a high degree of servility towards the Western world instead of working to strengthen its own sovereignty.

From a geopolitical point of view, what threat did the significant purchase of land by American multi-companies in Ukraine pose to Russia?

Americanization of Ukraine. As a continuation of the previous question: the American presence is not only a military, but also a political and economic threat from Russia’s perspective. In food exports, Russia ranks first in terms of export earnings for more than one product. Obviously, if Americans take over the dominant economic roles in Ukraine, as one of the world’s most important agricultural exporting countries, then Russia will already have a competitor in the great power dimension.

To what extent can this significant American gain in Ukraine perpetuate the war situation? Is this really why the USA continues to support Ukraine with tens of billions of dollars in order to preserve its previous land acquisitions?

The question is more about how the USA benefits from the Ukrainian agricultural lands owned by its companies in the context of the Russian-Ukrainian war. Even at the current stage of the conflict, it is quite clear that the war generates earthquake-like processes on the world economic scene; and as a result of the prolongation of the war, a serious livelihood and food crisis began to unfold. In such a situation, the value of Ukrainian agricultural lands will naturally increase even more, and even become crucial from the point of view of global food supply – however, the laurels are reaped by the American ownership circle. In addition, the world economic order is expected to reorganize over time along the lines of natural resources, minerals, and food.