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EBRD says 10 firms to invest $1 billion in Ukraine agribusiness

Published 09/10/2014, 18:29
EBRD says 10 firms to invest $1 billion in Ukraine agribusiness

LONDON (Reuters) - The European Bank for Reconstruction and Development said it had identified 10 agribusiness firms prepared to invest $1 billion in Ukraine in the next year, part of a strategy to help its economy recover from conflict with pro-Russian rebels.

The EBRD had sent a questionnaire to growers, food processors and in other agriculture-related business clients, seeking to find firms with plans to invest that might use the bank's help.

"Ten of the participating agribusiness companies stated in a questionnaire that they are ready to invest $1 billion (0.62 billion pounds) in the next year," said Gilles Mettetal, the EBRD's agribusiness director, in a statement.

"The EBRD can help them work consistently with the government to attract new financing to Ukraine and to ensure continuity in the reform process."

The bank itself aims to invest 1 billion euros in Ukraine this year across different industries.

"The EBRD has stepped up engagement in Ukraine's agribusiness sector. As of the beginning of this month, 10 projects have been signed in the sector so far this year for a total investment of 194 million euros," the bank said.

The World Bank has said Ukraine's economy is likely to shrink by 8 percent this year and that the conflict with pro-Russian separatists will push any hopes for growth to 2016.

Agriculture accounts for around 10 percent of Ukraine's economic output, its data shows.

Earlier this year, the World Bank said Ukraine had "tremendous agricultural potential" but that "this potential has not been fully exploited due to depressed farm incomes and a lack of modernization within the sector."

The former Soviet republic expects to harvest 64.4 million tonnes of grain this year and export about 30 million tonnes in the 12 months to end-June 2015, down from 32 million the year before.

(Reporting by Marc Jones; editing by Jane Baird)

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