The European Bank for Reconstruction and Development (EBRD) is planning to invest €1.1 billion in Ukraine in 2010.
Speaking to Interfax-Ukraine, EBRD Principal Advisor in Ukraine Anton Usov said: "Our investment in 2009 has exceeded €1 billion. Next year, the indicator will not be any less than this year's."
The largest financial investor in Ukraine, the EBRD has been a supporter of many sectors in Ukraine, including its agribusiness sector. As of the end of June this year, the EBRD had committed a massive €4.3 billion through 179 projects in Ukraine
Sector breakdown of current EBRD projects in Ukraine
Source: EBRD, Ukraine Country Factsheet, April 2009
In December 2009, the Food and Agricultural Organisation of the United Nations (FAO) and the EBRD agreed to help the Ukrainian agricultural industry by developing a new crop forecasting methodology. This will help the Ukrainian grain sector to attact more potential investors as farmers will be able to anticipate price changes and assess market risks accurately.
In April 2009, the EBRD offered a US$20 million loan to Astarta Holding, a Ukraine-based sugar producer, to help it purchase equipments for its agricultural farms.
Why Ukrainian agricultural land?
Ukraine, once called the "bread basket of Europe," has a long agricultural history. In recent years, as rich nations begin to worry about a looming global food crisis, many are rushing to snatch up agricultural land from abroad to grow crops.
The country is among the many targeted states worldwide, including Sudan, Brazil, Uganda and regions in south-east Asia.
The post-Soviet state boasts of having 70% of its land arable, but more importantly is its abundace of black earth soil - 40% of chernozem in the world is located in Ukraine.
Although the economic performance was heavily affected by the global economic downturn in 2009, its agricultural industry continued to achieve outstanding performance.
Following a bumper harvest in the last marketing year, the Ukrainian Agrarian Confederation is expecting grain exports in the country to hit 23 to 24 million tonnes, just 1 million tonnes short of last year's record.
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