The best place to make homemade wine. In Ukraine, this place is the Odessa region. Here, grapes are grown in almost every rural house.
Ukrainian law allows foreigners to buy such houses. But there are no buyers from abroad. Because no one promotes the rural real estate of the region on an international scale. The war further diverted attention from this region.
But right now is the time to make profitable deals. After all, the price of rural houses with vineyards has dropped to a record low and starts from US$1,500!
The most drunk state of Ukraine
After the annexation of Crimea by Russia, the Odessa region became the main wine-growing region of Ukraine. About 80 per cent of all grapes for wine production are grown in the region. In 2020, the total industrial vineyard area was 42,502 acres (17,200 ha). Thirty years ago, this figure was three times higher. The area of vineyards of the villagers is not known. But it is reliably known that 82 grape varieties are grown in the region, of which 42 are technical and table varieties. Grapes for wine production occupies 90 per cent of all vineyards. Only 10 per cent of grapes are grown for food. The most popular grape varieties in the Odessa region for wine production are Aligote (16.2 per cent), Cabernet Sauvignon (13.1 per cent), Rkatsiteli (7.4 per cent), Odessa Black (6 per cent), Merlot (5.7 per cent), Chardonnay (5.3 per cent), Sauvignon green (4.7 per cent).1
Climatic conditions greatly influence the grape harvest. The annual harvest of grapes by commercial enterprises can be 250,000 – 300,000 tons. The main product of grape processing is grape must. This product makes up 50-60 per cent of all production volumes. Wine with an alcohol content of no more than 15 per cent makes up about a quarter of all production volumes. Sparkling wines from fresh grapes make up about 10 per cent of all production volumes.2
The annual volumes of production of wine materials also vary greatly. However, the general trend is a decrease in production volumes due to a decrease in the total area of vineyards. In 2017, the winemakers of the region produced record volumes of wine materials – 12,286 thousand decaliters, then in 2020 the volumes of produced wine materials amounted to 3071 thousand decalitres.3 Thirty years ago, total production was 3.2 million decaliters.2 Wine that is made in the Odessa region is supplied to the domestic market. The cost of Odessa wine in Ukraine varies from US$3.7 to US$61.8 (UAH139 – UAH2283)** per bottle.4
Wine is also imported. For example, Odessa wine is sold in Japan at a price of US$12.2 per bottle.5 Total volumes of regional wine imports are not known. But there is accurate evidence that all products are made by private companies. All state wineries are leased to private businessmen. Some of these wineries will be sold.6
In total, about 700 companies operate in the wine industry of the Odessa region.2 Only some firms bottle wine. This is a very small amount. The reason is the current laws. The Ukrainian government has banned the bottling of wine by villagers who own vineyards. That is, villagers can only make wine for themselves. But the villagers cannot make wine for official sale.7 As a result, tens of thousands of private vineyard owners sell wine illegally. These sales are very small. Each villager produces from several tens to several hundred litres of wine. This volume is enough for their own needs and for sale to neighbours. Such wine is given as a gift for the holidays or used to exchange for something. Of course, this wine is not certified. But this wine is as tasty as the most expensive wines in the world. Homemade wine will not make you rich. But homemade wine allows you to enjoy life. This is the main point of owning a vineyard in the Odessa region. It is not difficult to do this.
Buying a rural house in the Odessa region
Ukrainian legislation prohibits the purchase of agricultural land by foreign citizens*.8 But the law allows foreigners to buy rural houses and the plots on which these houses are located. In this way, foreigners can become owners of a small vineyard and a home winery. This can be used to produce wine that you can drink yourself. In order to purchase a rural house with a vineyard, a foreigner does not have to register as an entrepreneur and even become a tax resident. The transaction rules are very simple. These rules are the same for foreigners and citizens of Ukraine.9 Due to hostilities, real estate transactions are prohibited in some regions of Ukraine.10 However, real estate transactions are allowed in the Odessa region.11 Due to military restrictions, you can only buy houses that are located on privatized land. In Ukraine, a lot of rural houses are located on non-privatized land. Therefore, when choosing a house, you need to find out whether the land is privatized.
Notaries conclude real estate transactions. During the war, not all notaries can do real estate transactions. The Government of Ukraine regularly updates the list of notaries who can do this. The list of such notaries is published in local newspapers and on a special website.12
The real estate seller must conclude the transaction personally. However, a real estate buyer can send a trusted person to conclude a deal. The authority of this person must be confirmed by a power of attorney. The power of attorney must be certified by a notary. Buying a rural house is two transactions. A deal to buy a house and a deal to buy the land on which the house is located. The total price of these transactions depends on the value of the land and the house. Usually, the total price for completing two transactions is about $500-700 (UAH18500-UAH26000).***
You can find a rural house on Ukraine’s largest site for free ads OLX.ua. At the beginning of March 2023, about 6,000 rural houses were sold in the Odessa region.13 The cheapest farmhouse with a vineyard cost US$1,500 (UAH55300).14 The most expensive farmhouse with a vineyard cost US$85,000 (UAH3,136,500).15
The price of houses depends on a large number of factors. One of the most important is the availability of water. Paradox. There are a lot of large lakes on the territory of the Odessa region. There is also a large river Dniester and Danube, which flow into the Black Sea. However, in many villages there is a shortage of fresh water. It makes it hard watering vineyards and even people’s lives. For example, in the village of Dolinskoye, near the city of Reni, water is supplied only twice a week. Groundwater under the village is very deep. The water is almost 500 feet deep. Because of this, water production is possible only in a few artesian wells. In order to save water, water is supplied very rarely. The Danube is only a few miles from the village. However, local authorities cannot build a water pipe to use water from the river. Local residents dig holes in the ground and concrete the walls of these structures. These holes are covered with lids. In such pits there is no sunlight, dust and small insects. Therefore, the water in these underground pits is very clean for a long time. When the water supply works, water is poured into these pits. Then the water is used until the water supply is turned on again. Such water pits are called “basin”.
Another problem is the shortage of gas. Many settlements are not gasified. Housing in such cities and towns is heated by firewood, coal or electricity. And this is very inconvenient. For example, in the city of Kiliya, housing is heated with coal in winter. Coal was very expensive this winter. Many local residents could not buy this fuel. These people saved and lived in houses where it was cool.
Also, many houses in the Odessa region are built of clay. Sun-dried clay bricks are not as durable as wild stone or shell bricks. Mud-walled houses stand on weak foundations. Usually these foundations are trenches filled with slag or small stone. There is no concrete in such foundations. As a result, clay houses on weak foundations are destroyed faster than other types of houses.
Therefore, when choosing a rural house, the buyer needs to find out if there is water and gas. You also need to find out what material the walls of the house are made of. Brick house with gas and water is the best choice. It is especially good if this house is located on the seashore or estuary. Living in such a house, you can not only grow grapes but also swim and sunbathe. In this case, it turns out a private winery on the seashore. But buying a house is no reason to be happy. After all, this is not the end, but only the beginning of the story. The secret of a successful winery is the constant work of the owner. Grapes require constant care. If you are not ready to do this, then it is better not to buy a house.
Residents of the Odessa region share their impressions about owning vineyards and wineries
“The area of my vineyard is about a third of an acre. However, even such a small vineyard requires constant care. Now I am not in my house because of the war. The grapes have become not very good. The vine is withering. The bunches of grapes are sluggish. Wine cannot be made from such grapes “But before the war, when I was constantly working on the site, the grapes gave a good harvest. I specifically bought several varieties of grapes from a nursery in the village of Tairovo,” says Sergey Petrovich, the owner of a house with a vineyard in the village of Sanzheyka, Ovidiopol district, Odessa region.
“I have 140 grapes. Most of them are grapes of the “Thousander” variety. This is the so-called technical grape. It is a cheap, unpretentious and common variety. If you make wine only from these grapes, then the wine will not taste good. So I planted some “Isabella” grapes. This is an exquisite and expensive grape variety. By mixing these two grape varieties I get good wine. When there is a drought, I manage to make 100-140 litres of wine. When there is a lot of rain, there is an opportunity make 200-250 litres of wine. I sell this wine in the nearest village Lebedevka. There are many hotels, tourist bases and boarding houses in this village. In the summer a lot of people go there. Tourists willingly buy my high-quality and inexpensive wine. But I want to improve my production. To do this, I need to uproot the cheap grape variety “Thousander” and plant a new grape variety. It is better to use the Spanish grape variety “Isabella”, which I have already experienced in my land. My land plot allows me to plant 400 bushes of such grapes. This will allow me to make almost 3 times more wine. It will be a quality wine that has the same name as the Isabella grape variety. Such wine can be sold to a wider range of buyers. But for the cultivation of this grape will have to try. To do this, I need to use a drip irrigation system. Now there is a war going on. But this grape variety is still brought from Spain to Ukraine. So I can start a new business without waiting for the end of the war,” says Vladimir, the owner of a rural house with a vineyard in the village of Tuzly, Belgorod-Dnestrovsky district, Odessa region.
As you can see, things are different for different people. But if people want to win, then even war cannot prevent you from doing so. In the Odessa region, the owners vineyards know this well. Whether you will be among these people depends only on you.
*Foreigners can buy agricultural property by creating a joint venture with Ukrainian citizens3
** Official exchange rate UAH36.9 hryvnia for US$1 *** Based on author’s experience
References
1. https://dumskaya.net/news/fakty-ob-odesskom-vine-nachali-delat-zadolgo-do-133587/
2. https://uk.wikipedia.org/wiki/ВиноробствовОдеській_області
3. https://odessa.web2ua.com/v-odesskoj-oblasti-stremitelno-sokrawaetsja-proizvodstvo-vina-i-vinomaterialov-5168/
4. https://rozetka.com.ua/ua/vino/c4594285/producer=shabo/
5. https://dumskaya.net/news/v-yaponii-nachali-prodavat-vino-iz-odesskoy-obla-171080/
6. https://www.048.ua/news/3320413/kakie-vinzavody-odesskoj-oblasti-prodadut-v-etom-godu-i-pocemu-gosudarstvo-ne-proizvodit-vino
7. https://kolonist.com.ua/ru/news/2015/golovaukrainskogobyurovinograduivinatseyrikmozhestatirokomvelikikhvin/
8. https://pravdop.com/publications/novosti-kompaniy/pokupka-zemli-inostrannim-licom-v-ukraine-v-2022-godu-02-2022-132/
9. https://migrate.com.ua/ru/kupivlya-neruhomosti-nerezydentom/
10. https://thepage.ua/real-estate/kak-rabotaet-rynok-nedvizhimosti-v-usloviyah-voennogo-polozheniya-ogranicheniya-i-riski
11. https://biz.ligazakon.net/ru/analitycs/211334_kuplya-prodazha-nedvizhimosti-v-usloviyakh-voennogo-polozheniya
12. https://jurliga.ligazakon.net/ru/news/217896_obnovlen-perechen-notariusov-kotorye-v-usloviyakh-voennogo-polozheniya-sovershayut-notarialnye-deystviya-otnositelno-tsennogo-imushchestva
13. https://www.olx.ua/d/uk/nedvizhimost/doma/od/
14. https://www.olx.ua/d/uk/obyavlenie/prodam-bolshoy-chastnyy-dom-IDOitTy.html?isPreviewActive=0&sliderIndex=9
15. https://www.olx.ua/d/uk/obyavlenie/sanzhyka-prodazh-budinku-more-vlasnik-IDQpH7T.html?isPreviewActive=0&sliderIndex=18
