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 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.
The European Investment Bank, the bank of the European Union, invested €554 million in 2021 in developing Ukraine`s transport infrastructure, urban mobility, education infrastructure, and the local economy, including support to increase COVID-19 resilience. Ukraine remained the main recipient of EIB funding among the countries of the Eastern Neighbourhood, having received more than 60% of all EIB lending in the region.
The EIB and the Government of Ukraine today signed three loans totalling €640 million to foster the sustainable growth of Ukraine and the prosperity of its people. The operations are in line with the priorities of the Government of Ukraine and the European Union to support the long-term social and economic development of eastern Ukraine and integration of the conflict-affected regions as well as the development of sustainable municipal transport and the modernisation of the transport infrastructure in the country.
The European Investment Bank (EIB) and the Ministry of Communities and Territories Development of Ukraine have today signed a grant agreement of €7 million to be funded by the EU to support the preparation and implementation of the Ukraine Recovery Programme. The programme, which received €340 million of EIB financing in late 2020, will contribute to the restoration of decent living conditions and economic activity in areas affected by the conflict in eastern Ukraine and support basic infrastructure needs for internally displaced people and host communities.