EIB supports Agri-Food Sector in Ukraine with EUR 50 million

EIB supports Agri-Food Sector in Ukraine with EUR 50 million

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  •  Release date: 17 October 2014
  •  Reference: 2014-223-EN

The European Investment Bank (EIB) is lending EUR 50 million to LLC FIRMA ASTARTA-KIEV, a leading Ukrainian agroindustrial producer.

EIB Vice-President László Baranyay, responsible for lending operations in Ukraine, stated:
“The EIB will directly support, for the first time in Ukraine, the development of the local private sector. The loan will help improve the resource efficiency of the country’s agri-food sector and contribute to a better food security and self-sufficiency. It will support the economic development of Ukraine and its integration with international market and generate additional employment, particularly in country’s rural areas.”

"Astarta-Kiev" CEO and founder Viktor Ivanchyk, stated:  

"Astarta is focused on high operational efficiency and follows its long-term growth strategy. Our investments into industrial assets, infrastructure, bio-energy and production efficiency contribute to development of both: our business and rural areas where we operate. Our business is socially responsible, and we are committed to creating new jobs, supporting local communes, contributing to infrastructure development. We strongly believe in global competitive advantages of Ukraine's agrisector and are working hard to unlock further its high potential".

The EIB – the European Union’s bank – finances projects in Ukraine on the basis of an EU Council and European Parliament mandate for the countries of the Eastern Neighbourhood. The mandate allows the Bank to extend loans to support projects of significant interest to both the EU and its Eastern Neighbours, in the areas of local private sector development, social and economic infrastructure and climate change.

The European Commission has announced a comprehensive assistance package amounting to EUR 11 billion over the coming years to support Ukraine under certain conditions. For its part, the EIB would contribute significantly to this package by providing lending over the next three years up to EUR 3 billion should the political and operational conditions allow. The Bank will focus on energy and infrastructure investment as well as access to finance for SMEs.

Support to stabilize the Ukrainian economy and to take advantage of the new trade regime with the EU in the context of the DCFTA signed in June 2014 is particularly relevant.

Founded in 1993, “Astarta–Kiev” is a vertically integrated agro-industrial holding specializing in sugar and agricultural production. It has proven to be a growing, transparent company, a reliable partner and supplier. “Astarta–Kiev” business units are located in different districts of Poltava, Vynnitsia, Kharkiv and Khmelnitskiy regions. It employs up to 14 thousand people, mainly in rural areas with limited employment opportunities, as well as it provides a lot of support to local communes. "Astarta-Kiev" invests into bioenergy projects and recently commissioned biogas facility at one of its sugar plants in Poltava region.

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