IFC to invest USD 300 million into the agricultural sector of Ukraine

investing in Ukraine: Ukraine agriculture - sale of agricultural land

This article deals with the planned #investment of #IFC into the #Ukrainian agricultural sector in 2016. In addition, some other developments of the #agricultural sector are discussed.

Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.

Head of IFC representative office in Ukraine announced that the corporation is going to invest up to USD 300 million into the agricultural sector of Ukraine in 2016. She also pointed out that IFC is one of the largest investors of Ukraine and provides investment into the agricultural sector in the amount of up to USD 200-300 million annually.

In addition, Cargill announced about its investment of USD 100 million into construction of the new grain terminal at the sea port of Yuznii (Odesa region). Under the terms of the investment cooperation, the Administration of Sea Ports of Ukraine is obliged to construct water area with proper dredging near the terminal. The first facility of the terminal will have an annual loading capacity of 5 million tonnes of grain and other commodities. The second facility will increase loading capacity by 2-4 million tonnes annually.

We note that Ukraine is currently shipping around 35 million tonnes of grain from its sea ports but plans to substantially increase export loading capacity within the next couple of years.

In addition, one of the largest agricultural holdings in Ukraine, namely Astarta Holding, announced about its investment of around EUR 24 million in Ukrainian agriculture. The holding will allocate 60% of the sum for investment into agricultural business, 30% for sugar production and 10% for other fields of activity. Also, at the end of 2015 the European Investment Bank provided a loan facility for Ukraine in amount of EUR 400 million in order to finance cultivation of cereals and oilseed crops in Ukraine.

We note that agriculture is one of the most attractive sectors of the Ukrainian economy. According to the Ministry of Agrarian Policy and Food of Ukraine, agriculture provides 14% of the total GDP of Ukraine. Exports of the agricultural sector in 2015 amounted to USD 14.6 billion, representing the unprecedented 38.2% of Ukraine’s total exports. Last year the agricultural sector attracted over one billion USD of investment. There are over 3 million people employed in agricultural industry, which constitutes more than 17% of all employed persons in Ukraine.

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