DARA Group has signed an agreement with a Chinese corporation to jointly invest in the Ukrainian agricultural sector, local media reported Tuesday [23 September 2014]. The memorandum of understanding was inked on Monday between the Ukrainian multi-sectorial group and China’s Huangfan District Agricultural Corporation based in the country’s central Henan Province. Sergey Yevtushenko, head of Ukrainian State Agency for Investment and National Projects, attended the ceremony…Full Article: The Global Times Sept 2014

Key Point

  • DARA Group and Huangfan will invest US$58 million over the next five years in Chernigov Oblast, northern Ukraine. Of the $58 million, US$25 million will be used to develop cattle breeding, US$17.5 million will be used for plant cultivation improvements, and the remaining amount (~US$15.5 million) will be used to develop a pig-breeding complex.

ChinaAg Comment

  • In February 2014, China sought US$3 billion in compensation from Ukraine for breaching loans-for-grain contract. According to the contract, Ukraine must supply grain to China over a 15 year period with annual exports not exceeding 6 million tons.
  • In June 2013, China’s Xinjiang Production and Construction Corps (XPCC) and Ukraine’s KSG Agro agreed on a US$2.6 billion deal to develop (50 year project) 3 million hectares of Ukrainian farmland.
  • In October 2012, it was reported that Ukraine would export ~3 million MTs of corn to China every year as compensation for a $3 million loan issued by Export-Import Bank of China.

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