OREANDA-NEWS. July 14, 2010. Ukraine’s major agribusiness operator, Astarta, will receive a EUR10 million loan from the EBRD, which is continuing to lend actively to this key sector of the Ukrainian economy. Astarta is planning to use loans proceeds for purchase of equipment, which will bring significant energy efficiency improvements at the company’s sugar production plants, as well as to construct two sugar storage facilities, reported the press-centre of EBRD.

This is the third transaction between the Bank and Astarta, which brings total EBRD commitments to the company to over EUR40 million since May 2008. The project is part of the Bank’s work towards reducing the cost of food by helping boost agricultural output and support high-performing agricultural companies in the region.

The project is expected to result in further energy savings which will help ASTARTA lower its production costs, improve competitiveness and reduce the carbon footprint of its operations. The loan is a is a continuation of ASTARTA’s energy efficiency programme initiated in 2008 and supported by the first EBRD loan.

Gilles Mettetal, EBRD Director for Agribusiness said, “The Bank is once again demonstrating its commitment to the sustainable development of local agriculture. By supporting companies like ASTARTA, we promote energy efficiency, reduction of carbon emissions and modern farming methods. All these aspects are crucial in Ukraine’s bid to become the breadbasket of Europe once again.”

Victor Ivanchyk, CEO of ASTARTA Holding N.V. said: “We are proud with our impressive track record in cooperation with the EBRD. We consider the next loan as the recognition of ASTARTA’s efforts in investing into sustainable development and environment protection, as well as introducing the Best Available Techniques. The new facility will help us further to increase efficiency of our key production assets and to strengthen the leading position of ASTARTA on the Ukrainian agrimarket.” 

In the agribusiness sector alone, the EBRD has directly committed around EUR6 billion in 400 projects across Central and Eastern Europe and the Commonwealth of Independent States since 1991.

The European Bank for Reconstruction and Development is the largest financial investor in Ukraine. As of 1 May 2010, it had committed over EUR5.0 billion through 197 projects.  

*ASTARTA is the leader of sugar production and agriculture in Ukraine. The Company’s main activity is production of sugar and sugar by-products (molasses and dry granulated pulp), growing and sales of grains and oilseeds, and also meat and milk. Implementing its strategy of vertical integration, the Group operates about 180 thousand hectares of land under long-term lease.