Ukraine’s Minister of Agriculture, Taras Kutovyi, met with the Vice President of the European Investment Bank (EIB) to discuss a project which will provide €400 million worth of credit for small and medium farmers to make a “qualitative leap in the development of domestic agriculture”.
Bearing in mind that farms classed as small and medium in size in Ukraine are holdings that measure in thousands of hectares then this is not necessarily about subsidising small holdings.
The Minister said at least 70% of the fund will go to SME’s with public sector operators, research stations, laboratories, institutions and the like receiving 30%.
The project is expected to run from 2016 to 2020 with loan terms over 12 years with a grace period of four and is expected to be 50% co-funded with Ukraine banks.
Eligible project subject areas include primary grain and oilseed production and drying, cleaning, sorting, testing and storage of grain and oilseed.