The Ministry of Agrarian Policy together with experts of the World Bank analyze the possibilities of reducing the risks of investing in the agroindustrial complex

Submitted by bashun on Fri, 02/23/2018 - 14:37

Experts of the World Bank and the Ministry of Agrarian Policy form the list of bottlenecks in the agricultural sector, which hamper investment activity in this area, for their elimination. This was discussed at the meeting of the First Deputy Minister of Agrarian Policy and Food of Ukraine Maksym Martyniuk with representatives of the World Bank.

 The event was attended by the Head of Programs on Infrastructure and Sustainable Development for Ukraine, Belarus and Moldova, Europe and Central Asia Region Liudmyla Butenko, Lead Economist Klaus Daininger, Head of the Agribusiness Program for Europe, Central Asia and Africa Hines Strubenhoff, Team Leader and Senior Economist for Agriculture Sandra Broca, representatives of the Ministry of Agrarian Policy and the State Service of Ukraine for Geodesy, Cartography and Cadastre.

In particular, the parties detailed directions and projects that increase investment attractiveness and revitalize business activity in the industry by reducing investment risks. It is about improving the regulatory standards and developing the existing market infrastructure, as well as implementing applied projects in terms of providing resources and informing representatives of agriculture.

As Maksym Martyniuk noted, the industry's potential, especially with regard to its small players, is not fully realized and can be unlocked for creating the appropriate conditions, increasing the share of the agricultural sector in the national economy. "The investment climate in the agrarian sector is derived from the national one, but it has its own specific components, in part of which we can work on improvement. Examination and support of the World Bank will help make this analysis more qualitative and take into account the experience of other countries," stresses he. 
The parties will form their vision in the near future, after which specific projects will be developed in certain areas.



In January-September 2017, 40.5 billion USD of capital investments were invested in agriculture, hunting and related services, which is 37.8% more than in the same period last year. In general, the share of capital investments in agriculture was 15.6% of the total.
The main source of financing of capital investments is the own funds of enterprises and organizations, due to which 72% of the total volume is mastered.
Over the same period, capital investments in the production of food, beverages and tobacco products reached 12.7 billion UAH, which is 7.5% more than in 9 months of 2016. In general, the share of capital investments in food processing amounted to 14.6% of the total volume of such investments in industry.
As of July 1, 2017, 233 investment projects are being implemented in the agrarian sector with a total estimated cost of 36.7 billion UAH.



Read more