OREANDA-NEWS. The European Investment Bank (EIB) is lending EUR 50 million to LLC FIRMA ASTARTA-KIEV, a leading Ukrainian agroindustrial producer.

EIB Vice-President LЁўszlЁ® Baranyay, responsible for lending operations in Ukraine, stated: "The EIB will directly support, for the first time in Ukraine, the development of the local private sector. The loan will help improve the resource efficiency of the country's agri-food sector and contribute to better food security and self-sufficiency. It will support the economic development of Ukraine and its integration with international markets and generate additional employment, particularly in the country's rural areas."

Astarta-Kiev's CEO and founder Viktor Ivanchyk, stated: "Astarta is focused on high operational efficiency and follows a long-term growth strategy. Our investments in industrial assets, infrastructure, bio-energy and production efficiency contribute to the development of both our business and the rural areas in which we operate. Our business is socially responsible, and we are committed to creating new jobs, supporting local communes, contributing to infrastructure development. We strongly believe in the global competitive advantages of Ukraine's agri-sector and are working hard to further unlock its high potential".

The EIB - the European Union's bank - finances projects in Ukraine on the basis of an EU Council and European Parliament mandate for the countries of the Eastern Neighbourhood. The mandate allows the Bank to extend loans to support projects of significant interest to both the EU and its Eastern Neighbours, in the areas of local private sector development, social and economic infrastructure and climate change.

The European Commission has announced a comprehensive assistance package amounting to EUR 11 billion over the coming years to support Ukraine under certain conditions. For its part, the EIB would contribute significantly to this package by providing lending over the next three years up to EUR 3 billion should the political and operational conditions allow. The Bank will focus on energy and infrastructure investment as well as access to finance for SMEs.

Support to stabilise the Ukrainian economy and take advantage of the new trade regime with the EU in the context of the DCFTA signed in June 2014 is particularly relevant.