Ukraine's Agribusiness to Attract USD 30 Bln in The Next 10 Years - Minister of Agriculture

Jun 22, 2013, 12:09 ET from Worldwide News Ukraine

KYIV, Ukraine, June 22, 2013 /PRNewswire/ --

Agro-industrial companies of Ukraine will attract up to USD 30 billion in investments in the next 10 years, stated the Minister of Agricultural Policy and Food Mykola Prysyazhnyuk. The head of the Agrarian ministry explained the increased interest of foreign investors to Ukraine's agricultural sector by the fact that the Government of Ukraine was taking steps to ensure that the conditions for the agricultural business were clear, transparent and predictable.

Remarkably, in 2012 Ukrainian agricultural sector raised UAH 16 billion (about USD 2 billion) in capital investments, which is 11 percent higher than in 2011. In late May the Ministry of Agrarian Policy and Food forecasted that in 2013 Ukrainian agricultural producers would be able to attract investments in the amount of USD 3 billion. So far, the amount of foreign direct investment into Ukraine during January-March 2013 has amounted to about USD 1.56 billion.

In addition, minister Prysyazhnyuk mentioned that Ukraine has been currently implementing the Economic Development Program (EDP) for 2013-2014 with an objective to attract investments into agricultural engineering. So far, there have been five investment projects under review. They will be implemented under the state guarantee of about UAH 700 million, he said. "Within it [EDP -Ed.], we plan to attract investment into the domestic agricultural machinery development," stressed the minister.

The investment projects stipulate the start of the production of combine harvesters at Kherson machine building plant in cooperation with the German company CLAAS, as well as at the Paton Welding Plant in cooperation with New Holland, informed the ministry website. Concurrently, Ukrainian company Ukravtozapchast plans to produce modern powerful tractors with Italian company Landini, whereas wide-seeder and tillage equipment will be produced at JSC Red Star. According to the minister, these investment projects would increase import substitution of agricultural machinery up to 40 percent.

In April 2013, Ukrainian state machine building company Yuzhmash signed a cooperation agreement with Chinese companies CITIC International Contracting Co., Ltd. and YTO International, Ltd. regarding the joint production of tractors YTO-PMZ and their supply to Ukraine to mechanize labor-consuming agricultural work.

SOURCE Worldwide News Ukraine