LONDON, ENGLAND — The European Bank for Reconstruction (EBRD) announced on Dec. 15 it is providing a loan of up to $85 million for a leading Ukrainian agribusiness producer PJSC Myronivsky Hliboproduct (MHP Group). The funds will support the development and expansion of the group.

The MHP Group is planning to develop its valued-added grain and fodder business in Ukraine.  The EBRD loan will support the launch of MHP’s new soy processing plant and the expansion of the group’s farming activities, by funding the purchase of modern farming equipment that will allow for increased cost and resource efficiency.

The MHP Group, established in 1998, is a major vertically integrated grain, fodder and poultry meat producer in Ukraine, which has focused on the steady growth of its operations for the past 17 years. The experience and knowledge gained by MHP over the years will be transferred to Zakhid-Agro, a recently acquired agricultural group located in western Ukraine, where the focus will be to improve harvest yields and transfer skills to local farmers. Through this project, MHP will promote sustainable cultivation techniques and set higher standards in farm management.

“As a major investor in Ukraine’s agribusiness sector, we feel it is important to support companies that are willing to expand during the current difficult circumstances experienced by the country,” said Gilles Mettetal, EBRD director of agribusiness. “This sector is a locomotive of the national economy, and our strategy is to promote its growth and competitiveness by working with companies like MHP.”

 “Despite such challenging times for Ukraine, MHP continues to develop,” said Yuriy Kosyuk, chief executive officer of MHP. “We understand that agricultural sector development is pivotal for our country as never before. Investing into new facilities, creating new jobs, being transparent and responsible today and tomorrow is the only right way to success both for MHP and Ukraine.”

In the agribusiness sector alone, the EBRD has directly committed more than €9.6 billion in over 600 projects across Central and Eastern Europe, the Commonwealth of Independent States, Mongolia, Turkey, and the Southern and Eastern Mediterranean region since 1991, the EBRD said.

The EBRD is the largest international financial investor in Ukraine, the company said. As of Oct. 1, EBRD had a total cumulative commitment of over €11 billion in 347 projects throughout the country.