New port project in Ukraine will benefit farmers, economy and food security
Handshakes and smiles as Cargill and MV Cargo formalize intention to construct a grain terminal in the port of Yuzhny
February 24, 2016
In a ceremony held in Kyiv, Ukraine, on Feb. 24, 2016, Cargill and MV Cargo formalized their intention to construct a grain terminal in the port of Yuzhny on the Black Sea coast in Ukraine by signing a Share Purchase Agreement (SPA). The signing ceremony was held in Ukrainian Prime Minister Arseniy Yatsenyuk‘s cabinet office in the presence of the U.S Ambassador to Ukraine and senior Ukrainian government officials.
“Ukraine is already one of the world’s great agricultural producers, but it should be an agricultural superpower,” said U.S. Ambassador Geoffrey R. Pyatt during the ceremony.
“I think I have a pretty clear idea of what American agricultural companies are now looking for,” he said. “They are looking for a Ukrainian government that demonstrates a clear and unambiguous commitment to the path of reform…and they are looking for a government and presidency that demonstrates a clear commitment to continued progress on the rule of law, to include the critical issue of anticorruption reform.”
Prime Minister Yatsenyuk welcomed Cargill’s investment and talked about the benefits to Ukraine’s economy, which will include port charges, taxes and the creation of jobs for local people.
This project marks a significant milestone for Cargill’s quest to acquire a port in Ukraine.
“We are delighted to finally be signing this agreement today, as we have been working towards this moment with our partners MV Cargo and with the Ukrainian Sea Ports Authority for quite some time,” said Andreas Rickmers, head of Cargill’s grains and oilseeds business in Europe.
“Through this investment, Ukraine’s port infrastructure will be expanded and will provide greater efficiencies to connect Ukraine’s surplus agricultural crops with the parts of the world demanding more food. This new port will benefit Ukrainian farmers, the overall economy and global food security. It will add to our footprint of port facilities in the Black Sea region and confirms our intention to keep investing in Ukraine’s agricultural sector,” said Rickmers.
"This project is of key importance for Ukraine to sustain its leading position among grain exporting countries, as this deep-water, state-of-the-art terminal will allow us to process vessels of high tonnage, delivering Ukrainian grain to markets all over the world. We expect the project to generate over UAH 300 million in tax payments annually and to create employment for around 350 people," added Andrey Stavnitser on behalf of MV Cargo.
In his speech, Rickmers drew attention to the fact that Cargill has been a faithful and long term investor in Ukraine since 2000, when its Donetsk sunflower seed crush plant was first commissioned. He told the audience that despite losing control of the plant due to the ongoing conflict in Ukraine, Cargill does not give up hope of one day regaining control of the facility.