Leading agricultural associations have appealed to the President of Ukraine to urgently sign Law No. 12148, which introduces loan payment holidays for farmers operating in frontline territories.
This was reported by the Ukrainian Agribusiness Club (UCAB), which, along with other members of the All-Ukrainian Agrarian Forum (VAF) — including the Public Union “Agrarian Union of Ukraine,” the Public Union “All-Ukrainian Agrarian Council,” the Ukrainian Poultry Farmers Association, the Ukrainian Agrarian Confederation, the Association of Milk Producers, the Ukrainian Pig Breeders Association, and the National Association of Sugar Producers of Ukraine — submitted a joint appeal to the head of state.
The appeal emphasizes the urgent need to enact the law “On Amendments to the Section 'Final and Transitional Provisions' of the Civil Code of Ukraine regarding the specifics of lending and financial leasing during martial law,” which was adopted by the parliament on March 27, 2025. The necessity stems from the fact that many farmers have lost the ability to continue normal business operations due to the ongoing hostilities across Ukraine.
“The situation is most dire for those who, before February 24, 2022, operated in territories that are now temporarily occupied or experiencing active combat. These farmers, upon fleeing occupation, lose both their businesses and the ability to continue their agricultural work,” the document states.
At the same time, the associations note that some commercial banks have been fully enforcing debt collection procedures on these farmers, seeking repayment on loans taken by enterprises that are now lost or under occupation. Such enforcement disregards the extraordinary circumstances and risks completely destroying agricultural businesses in affected regions.
According to a survey conducted in April 2025, the loan portfolio of enterprises in temporarily occupied territories amounts to UAH 362.6 million, with an additional UAH 131.9 million owed by enterprises in active combat zones. Only 38% of respondents have managed to fully repay their loans.
“In light of this, Law No. 12148 is a lifeline for hundreds of farmers who refused to operate under occupation, lost their farms and homes, but are trying to rebuild on territory controlled by Ukraine,” the appeal explains.
The law provides for:
- a ban on penalties (interest, fines, fees) during martial law and for one year after it ends;
- a deferral of principal loan repayments;
- a prohibition on the forced seizure of collateral from farmers who lost access to it due to hostilities or occupation.
“Therefore, considering that agricultural producers have been holding the economic and food front for four years straight during the full-scale war, and are still waiting for a systemic solution to the credit burden issue, we urge the swift signing of Law No. 12148. It will help preserve the agricultural potential in eastern and southern Ukraine,” UCAB concluded.
