The European Investment Bank’s (EIB) support to Eastern Partnership countries reached nearly EUR 8 billion in signed loans today, with a new operation for Ukraine’s crucial agriculture sector. This reflects the ongoing commitment of the EU Bank to the EU’s policy priorities in the region. On the eve of the 5th Eastern Partnership Summit, in Brussels today the EIB signed financing worth EUR 37 million to the Astarta-Kyiv holding, this will support the modernisation and innovation in Ukraine’s agricultural sector – the main source of Ukraine’s exports.
EIB Vice President Vazil Hudak said, “Support to Eastern Partnership countries remains a key priority for the EU Bank. We are working towards strengthening their economic competitiveness, increasing the quality of life of their citizens and targeting policy reforms, in line with EU priorities. The agreement signed today will help upgrade and innovate agriculture infrastructure in Ukraine which is so important for the country’s economy as the main source of its exports. It is also the first time in Ukraine, that the EIB will make financing available from its “InnovFin – EU Finance for Innovator” instrument under the European Union’s Horizon 2020”.
The Eastern Partnership is a joint initiative involving the EU and six Eastern European partners: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. As the EU Bank, the EIB is a key player in the Partnership including through EU4Business and has been active in the region since 2007, supporting projects that meet the EU’s strategic objectives.
The EIB financing agreed today will contribute to the upgrading of agricultural infrastructure, in support of a strategic economic sector of the country which generates some 20% of Ukraine’s GDP and is a significant source of employment for 14 million of Ukraine’s citizens living in rural areas.
The EIB loan will finance new storage capacities for grain and sugar for Agro-Industrial Holding “Astarta-Kyiv” – a leading sugar exporter in Ukraine. In this context, for the first time in Ukraine, the EIB will make financing available from its “InnovFin – EU Finance for Innovator” instrument under the European Union’s Horizon 2020 programme of which Ukraine is an associated member. The EU bank will use InnovFin to support Astarta’s development of agribusiness management software which will cover the entire agricultural value chain.
Modern storage facilities will contribute to the reduction of post-harvest losses and help mitigate adverse weather. In this way the EIB financing will contribute to the Banks’s Climate Action objective. Regions in Ukraine to benefit from this modernisation of the agricultural sector include: Vinnytsia, Poltava and Khmelnytskyi.
