China and Ukraine on Tuesday [5 December 2017] signed an action plan on jointly building the Silk Road Economic Belt and the 21st-Century Maritime Silk Road and agreed to deepen all-round collaboration to strengthen their strategic partnership at the third session of the China-Ukraine Intergovernmental Commission on bilateral cooperation in Kiev, capital of Ukraine. The meeting, co-chaired by Chinese Vice Premier Ma Kai and Ukrainian First Deputy Prime Minister Stepan Kubiv, concluded that bilateral cooperation has made good progress since the second session of the commission in Beijing in 2013…Full Article: The Global Times Dec 2017

Key Point

  • In 2011, the China-Ukraine Intergovernmental Commission was established to strengthen bilateral ties. As of December 2017, the next commission meeting was scheduled to be held in China in 2019.

ChinaAg Comments

  • By the end of 2018, Ukraine hopes that China will approve shipments of eggs, poultry, honey, and berry products.
  • In November 2017, China’s AQSIQ approved seven Ukrainian companies for sunflower meal exports and two companies for sugar beet pulp exports. Ukrainian sunflower meal and sugar beet pulp will be primarily used as animal feed for beef cattle and chicken.
  • From early to August 2017, China increased the number of certified Ukrainian dairy suppliers from 18 to 27, and approved beef imports. In August 2017, Ukraine stated it hoped that China would approve shipments of eggs, poultry, honey, and berry products by end of 2018.
  • In November 2016, during the 2016 Ukraine Silk Road Forum in Kiev, the First Vice Speaker of the Ukrainian Parliament stated her country would be interested in participating in China’s “16+1” mechanism.
  • In May 2016, two new COFCO funded (US$75 million) shipping berths opened in the Mykolaiv Commercial Sea Port, Mykolaiv Oblast, Ukraine. Located along the Black Sea, the COFCO-backed berths at the port will have an annual grain (e.g. corn) transit capacity of 2.5 million MTs, along with 143,000 MTs of storage facilities.
  • In April 2015, Ukrainian brewery, Obolon Corporation, was looking to enter the Chinese market due to a Russian import ban. In August 2014, Russia instituted an import ban on beer made by Obolon, SUN InBev Ukraine, and Ukrainian Distribution Company.
  • In September 2014, Ukraine’s DARA Group and Henan Province’s Huangfan District Agricultural Corporation signed a cooperation agreement to invest in Ukraine’s agriculture sector. Specifically, Huangfan will invest USD 58 million over the next five years in Chernigov Oblast, northern Ukraine. Of the USD 58 million, USD 25 million will be used to develop cattle breeding, USD 17.5 million will be used for plant cultivation improvements, and the remaining amount (~USD 15.5 million) will be used to develop a pig-breeding complex.
  • 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 2013, Henan’s state-owned Huangfanqu Farm (~6,700 hectares) registered companies in Tajikistan and Ukraine. In Tajikistan, Huangfanqu Farm had invested US$29 million in the country’s wheat, corn, and cotton (processing) industries. In Ukraine, the farm had invested US$10 million in the country’s wheat, rye, grass (forage), and dairy heifer (~1,800 dairy cows) industries.
  • In the autumn of 2013, Chinese President Xi Jinping launched The Silk Road Economic Belt and the 21st-century Maritime Silk Road, a strategic initiative to boost the economic development and trade of countries lying along the South China Sea, Bay of Bengal, Arabian Sea, Indian Ocean, and Red Sea, as well as overland in Central Asia and Europe.
  • 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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