The publication of this Handbook was supported by the Russian Federation

particular, improving the performance of  agents that attract foreign investments.
It is clear that actual possibilities for the practical realization of  ameliorative measures on salt-
affected lands depend mainly on the availability of  investment resources. For example, according 
to estimated calculations for Ukraine, the annual application of  gypsum to the Solonetz area of  
about 0.1 million hectares requires an investment of  almost 5.6 million USD and the ameliorative 
deep ploughing of  the Solonetz area of  0.04 million hectares requires about 2.7 million USD. 
High ecological standards and economic efficiency can be achieved on ameliorated lands on the 
basis of  a broad-scale use of  innovations and a realization of  the innovation-investment model in 
agricultural sector.
The main sources of  finance for the priority aspects of  innovative land amelioration development 
in Ukraine include the following: a) self-funding of  agricultural enterprises and associated 
organizations, b) the state budget of  Ukraine and local budgets at all levels, c) nature conservation 
funds  at  all  levels,  d)  bank  loans  and  finance  lease,  e)  domestic  and  foreign  investments  and 
international technical support and f) other non-budget funds in accordance with current legislation.
Additional investments can come from sources such as global and regional funds, common 
investment institutions, international financial and credit institutions and government loans from 
developed countries.
Considering the limited availability of  investment resources in the state, it is suggested that agricultural 
enterprises should be encouraged to seek their own funds for conducting amelioration of  salt-
affected soils in combination with their conservation and rational use, with a partial reimbursement 
of  amelioration expenses. For example, both gypsum application and deep ploughing of  salt-
affected soils should require a 10% reimbursement of  expenses from the government.
The efficiency of  investment and innovation support for land amelioration can be improved by 
the active involvement of  state funds into the public-private partnership, where the state uses 
mechanisms to attract private capital for innovative development.
In  self-funding  enterprises  profits  and  depreciation  remain  chief   sources  of   investments  into 

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Chapter 4.The rational use of saline and alkaline soils (with examples from Ukraine) 
innovative amelioration development. At the same time, many agricultural enterprises have recently 
been  unprofitable,  while  depreciation  has  reduced  its  potential  to  improve  financial  resources. 
Therefore,  mobilization  of   financial  resources  requires  both  internal  and  external  investments 
that can only be achieved through creating more favourable business climate together with use of  
institutional media to attract domestic investors and foreign funds.
Bank lending plays an important part in financing investment-innovation projects in the area of  
land amelioration. In this respect, it is important to solve state-level problems of  reducing the cost 
of  bank loans, extending the periods of  credit, increasing the credit supply and availability and 
diversity of  international use of  credit offsets. The best support of  amelioration projects can be 
provided via long-term concessional lending with partial or complete repayments of  interest rates 
from the state budget.
As long as agricultural enterprises have limited budgets and little potential for the self- financing 
of  ameliorative projects, there will be a need for investigating untraditional sources on finance. 
For instance, leasing can be a promising and effective solution to the problem. Financial leasing is 
more economical than bank credits and includes commodity lending that allows for the restoration 
and purchase of  productive assets without great financial strain. Therefore, in a near future it is 
advisable to implement public leasing to support the refurbishment of  existing enterprises with 
new ameliorative machinery.
The stimulation of  processes for creating effective sources of  investment can be achieved through 
the creation of  new agricultural producer networks with relevant joint-stock companies, agricultural 
venture businesses and agrocomplexes that can be more efficient in attracting both domestic and 
foreign investments into land amelioration [4].
It could be helpful to make the following institutional arrangements: 1) to form holding companies 
on the basis of  national water management enterprises as an effective way to increase the investment 
potential, 2) to apply consortium credits that imply minimizing lending risks and guarantees for 
repaying large loans and 3) to arrange cooperation between agricultural producers that have 
different legal statuses to enable joint investments and to minimize the risks.
Thus, a step-by-step implementation of  the innovation-investment system into the development of  
land amelioration practices opens up new opportunities for a larger volume and higher efficiency 
of  food production on ameliorated lands together with maintaining a high soil quality and further 
improvements in the food security of  Ukraine.

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Soil salinity manаgement manual | Part I.Soil salinity management in the Eurasian Region 
4.4. Information, regulations and methodologies for supporting the 
conservation and use of salt-affected soils