Wednesday, 5 April 2017

Ukraine's grain export infrastructure may get an investment boost

Ukraine’s State Food-Grain Corporation is a step closer to purchasing 500 of the much needed 3,000 grain wagons by the end of 2017. 

The long-term lack of investment in grain handling infrastructure is seen as a bottleneck to the expansion of Ukraine’s agricultural exports which has been compounded recently by a change in the rules reducing road haulage weights. 

As if to reiterate the issue, the New York fund Navigator Principal Investors LLC announced this week that they may invest $100 million in Ukrainian ports and Ukraine’s Prime Minister met with President of Korean Corporation Posco Daewoo during which they discussed investing in a grain port terminal.

It is a long way from a discussion to turning the key but it does illustrate that despite the perceived difficulties of doing business and political uncertainty in Ukraine many do still recognise the potential of agri investment projects.