(Source: European Investment Bank)
Ukraine: EIB supports the modernisation of agriculture with USD 120 million
The European Investment Bank (EIB) is lending USD 120 million to Epicentr Group to support the modernisation of Ukraine’s agriculture and food supply, one of the key sectors of the national economy. The Epicentr Group, one of Ukraine’s largest companies in the home improvement retail and agriculture sectors, will finance new grain silos and elevators, modern agricultural equipment, and grain railcars for transporting cereal. By supporting the modernisation of the agriculture industry in Ukraine, the European Investment Bank is aiming to increase food security and the efficiency of food supply, as well as increasing the sustainability of agricultural practices in Ukraine by way of efficient resource management, increased productivity and the reduction of agricultural waste. This is a key precondition for a modern and globally competitive agricultural sector, which, in turn, will make a significant contribution to curbing global warming.
Ukraine will benefit from some 1 100 permanent jobs created across the country and 300 jobs expected to be created during the construction phase. The jobs will boost economic activity and further improve the quality of living in Ukraine.
Team Europe continues to support economic development of Ukraine and its key economic sectors
Agriculture is a strategic economic sector and the largest export industry in Ukraine, a country with 41.5 million hectares of agricultural land, an area significantly larger than Germany. The arable land covers 70% of Ukraine and represents some 25% of the world’s reserves of black soil. In 2020, Ukraine’s agriculture sector generated approximately 9.3% of national GDP.
As the EU bank, the EIB has a long history of supporting the modernisation of agriculture in Ukraine. The portfolio of EIB-supported projects includes a €74 million infrastructure upgrade with agricultural company Nibulon, signed in 2016, and a €43 million modernisation and innovation project with Astarta-Kyiv, signed in 2017. The EIB also supported the construction of a new tomato production and processing plant by Agrofusion Group with a deal worth €23 million, signed in 2017, as well as the expansion of seed-oil production, agri-infrastructure and renewable energy production with a €250 million agreement with Kernel Group, signed in 2018.
Since 2007, the EIB has invested more than €7 billion in Ukraine. The Bank focuses on social and economic infrastructure, transport and connectivity, local private sector development, energy efficiency, climate action and innovation. Ukraine has been the main recipient of EIB support in the Eastern Neighbourhood, accounting for more than 60% of EIB lending activity in the region.
About the European Investment Bank (EIB)
The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
About the EIB in Ukraine
The EIB has worked with Ukraine since 2007. Ukraine has been the main recipient of EIB support in the Eastern Neighbourhood, accounting for more than 60% of EIB lending activity in the region. The Bank focuses on social and economic infrastructure, transport and connectivity, local private sector development, energy efficiency, climate action and innovation. Today, the EIB is one of the largest investors in Ukraine with signed projects of more than €7 billion.